Definition, Meaning & Synonyms

buy-out

noun

/ˈbaɪ.aʊt/

Definition

A buy-out is a financial transaction where an individual or group purchases a controlling interest in a company, often to gain full ownership.

Examples

The acquisition of a smaller company by a larger firm is often done through a buy-out.
After the buy-out, the new owners implemented several changes to the company’s structure.
Investors typically analyze the market before proceeding with a buy-out.

Meaning

The term ‘buy-out’ typically refers to the act of buying a significant portion, or all, of a company’s shares, allowing the buyer to take control of the business.