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 takes complete control of the company. This is called a management buy-out ( MBO).There are several variants of a MBO. Financial Services Glossary
leverage( d) buyout
These occur where the purchase price is beyond the financial resources of the managers and the bulk of the acquisition is financed by loan capital provided by other investors. Financial Services Glossary
Similar to the above but all employees are offered a stake in the new business. Financial Services Glossary

* * *

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.

* * *

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 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.

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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 done with borrowed money. The New York Times Financial Glossary * * * buyout buy‧out [ˈbaɪaʊt] also buy out noun [countable] FINANCE 1. when a… …   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

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