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Definition of «buyout»

A buyout refers to a situation where one company acquires another company entirely, often by purchasing all outstanding shares and taking full control over its operations. This can be done either through friendly negotiations or via a hostile takeover bid. The goal of the buyout is usually to consolidate ownership and gain complete control over the target company's assets, customers, and resources in order to increase profitability and growth potential.

Usage examples

  1. Company A announced a successful buyout of Company B, acquiring all of its assets and taking control of its operations.
  2. After years of partnership, John decided to offer his business partner a buyout, giving him the option to sell his share of the company.
  3. The buyout clause in the contract allowed the investor to purchase the remaining shares of the startup after a certain period of time.
  4. The private equity firm completed a multimillion-dollar buyout of a struggling retail chain, with plans to restructure and turn it around.
  5. The CEO negotiated a generous severance package as part of his buyout, ensuring he would receive substantial compensation upon leaving the company.

Phrases with «buyout»

Sentences with «buyout»

  • While the potential returns from a private equity firm's leveraged buyout of a company can be great, investors have begun to realize just how risky the highly leveraged transactions can be. (wikinvest.com)
  • The agreement between the clubs is around 2 million euros for the loan and 7 million euros mandatory buyout clause after a verification of the number of appearances. (blackwhitereadallover.com)
  • Experience of leveraged buyout analysis and other financial models that are necessary in deal positioning. (dayjob.com)
  • (see all sentences)

See also

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