Buyout


Buyout
Purchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy-out is done with borrowed money. The New York Times Financial Glossary

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buyout buy‧out [ˈbaɪaʊt] also buy-out noun [countable] FINANCE
1. when a person or organization buys a business:

• The company has accepted a buyout offer of $44.50 a share.

emˌployee ˈbuyout also ˌstaff ˈbuyout FINANCE
when employees buy the company they work for:

• One of the airline's unions is refusing to participate in an employee buyout.

ˌleveraged ˈbuyout FINANCE
when a person or organization buys a company using a loan borrowed against the company's assets, some of which may then be sold to pay off the loan:

• With debt taken on in a $4.9 billion leveraged buyout, the company could not afford to pay all its bills.

ˌmanagement ˈbuyout abbreviation MBO FINANCE
when a company's top managers buy the company they work for:

• The computer company is to be relaunched following a management buyout of its Dutch manufacturing plant.

2. FINANCE when a person or organization buys all the shares in a company owned by a particular shareholder:

• The company said it was continuing to negotiate a buyout of minority stakeholders.

3. HUMAN RESOURCES money given to someone to persuade them to leave a company:

• The airline plans to cut its payroll by 5,000, mainly through buyouts.

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buyout UK US /ˈbaɪaʊt/ noun [C]
FINANCE a situation in which a person or group buys most or all of the shares belonging to a company and so gets control of it: lead/propose/negotiate a buyout »

As Managing Director, he led the buyout that created the firm three years ago.

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a voluntary/hostile buyout

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buyout offer/bid/price

See also BUY-IN(Cf. buy-in)
See also EMPLOYEE BUYOUT(Cf. ↑employee buyout), LEVERAGED BUYOUT(Cf. ↑leveraged buyout), MANAGEMENT BUYOUT(Cf. ↑management buyout)

Financial and business terms. 2012.

Look at other dictionaries:

  • buyout — buy·out / bī ˌau̇t/ n: an act or instance of buying out Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. buyout …   Law dictionary

  • buyout — uy out n. (Business, Finance) the acquisition of ownership of a company by purchasing a controlling percentage of its stock. Syn: takeover. [WordNet 1.5] …   The Collaborative International Dictionary of English

  • buyout — two words at first; to purchase someone s estate and turn him out of it, 1640s, from BUY (Cf. buy) + OUT (Cf. out). As one word, the purchasing of a controlling share in a company, from 1976 …   Etymology dictionary

  • buyout — ► NOUN ▪ the purchase of a controlling share in a company, especially by its own managers …   English terms dictionary

  • buyout — [biout΄] n. the outright purchase, usually with borrowed funds, of a business, as by the employees or management …   English World dictionary

  • buyout — purchase of a controlling interest (or percent of shares) of a company s stock. A leveraged buy out is effected with borrowed money. Bloomberg Financial Dictionary This is when a company s management team buys all the company s shares and thereby …   Financial and business terms

  • Buyout — A buyout, in finance, is an investment transaction by which the ownership equity of a company, or a majority share of the stock of the company is acquired. The acquiror thereby buys out control of the target company. A buyout can take the form of …   Wikipedia

  • Buyout — The purchase of a company s shares in which the acquiring party gains controlling interest of the targeted firm. Incorporating a buyout strategy is a common technique used to gain access to new markets and is one of the most common methods for… …   Investment dictionary

  • buyout — UK [ˈbaɪaʊt] / US [ˈbaɪˌaʊt] noun [countable] Word forms buyout : singular buyout plural buyouts business a situation in which the managers or people employed in a company take control of it by buying all of its shares a management buyout See:… …   English dictionary

  • buyout — [[t]ba͟ɪaʊt[/t]] buyouts N COUNT: oft supp N A buyout is the buying of a company, especially by its managers or employees. It is thought that a management buyout is one option …   English dictionary