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 ?
With the increase of strategic investments and corporate venturing in the pharmaceuticals and biotechnology segments, mergers and acquisitions and strategic buyouts have become attractive exit options.
Although private equity deals have dominated acquisition activity, CFOs are predicting an increase in strategic buyouts this year.
Financing entrepreneurs, advising and financing strategic buyouts and bridging C-level strategic relationships, NYGG has advised Fortune Global 500 companies, governments and others on complex projects for more than 15 years.
Cash rich companies actively pursuing strategic buyouts.
Stephanz to lead its Financial Sponsor Group, which provides corporate finance coverage to private equity firms engaged in leveraged and strategic buyouts.
For example, when the South Korean economy went through restructuring in the late 1990s, H&Q AP spotted opportunity to make some strategic buyouts.
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