- 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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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 FINANCEwhen employees buy the company they work for:• One of the airline's unions is refusing to participate in an employee buyout.
ˌleveraged ˈbuyout FINANCEwhen 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.
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.
»a voluntary/hostile buyout
»buyout offer/bid/price
→ See also EMPLOYEE BUYOUT(Cf. ↑employee buyout), LEVERAGED BUYOUT(Cf. ↑leveraged buyout), MANAGEMENT BUYOUT(Cf. ↑management buyout)
Financial and business terms. 2012.