Strategic buyout

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Strategic buyout

Acquisition of another firm in order to realize some operational benefits which will result in increased earnings.

Strategic Buyout

The purchase of one company by another where the buyer believes that the acquisition will create synergy, which is a financial benefit that the buyer may derive from the acquisition. For example, the buyer may determine that the two companies together may be able to produce more revenue than either one could produce independently by combining the most efficient processes each brings to the merger. Alternatively he may decide that the strategic buyout will reduce expenses by eliminating or streamlining redundant processes. The main point of a strategic buyout is to ensure the acquirer benefits, though the purchased company often benefits as well.
References in periodicals archive ?
For example, when the South Korean economy went through restructuring in the late 1990s, H&Q AP spotted opportunity to make some strategic buyouts.
Plantagenet specializes in strategic buyouts and turnaround situations and currently has investments in both the United States and Europe.
Plantagenet Capital Management LLC, based in San Francisco, is a private equity firm focused on strategic buyouts and turnaround situations.
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