Buyout

Purchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy out is effected with borrowed money.

Buyout

1. An investment in which an entire company, or, more commonly, the controlling interest in the company, is sold. For example, if Jack and Frank each own a 50% stake in a mechanic shop, Frank may conduct a buyout by purchasing Jack's half of the company. In publicly-traded companies, buyouts are usually acquisitions by another company. However, a single investor may buy out a publicly-traded company; one calls this "going private." Other types of buyouts include venture capital buyouts or management buyouts. See also: Friendly takeover, Hostile takeover.

2. In a contract, the act of one party paying a fee to the other party to end the contract before its completion. The term especially applies to employer-employee contracts. See also: Break fee.

buyout

1. The purchase of a company. See also leveraged buyout.

2. The purchase of all the stock of a company, owned by a single investor or by a group of investors.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

buyout

(1) Securing the removal of tenants from a building by paying cash incentives for the early termination of their leases.Owners may desire to buy out tenants in order to rehab the property to attract a better quality of tenant at higher rates; in order to sell the property to an owner-occupier; or to remove an objectionable tenant causing problems but not technically in default.(2) Securing the release of a tenant from lease obligations in another building so the tenant can rent in the owner's building.The other building's owner may permit the buyout if he or she believes the departing tenant can be replaced fairly quickly, thereby gaining a large windfall profit from the buyout payment.

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References in periodicals archive

Catalyst acknowledges that the company's board of directors has formed a special committee (the "Special Committee"), which has announced that it intends to review the Insider Buyout Proposal.

Catalyst Capital announces offer to buy shares of Hudson's Bay Company

Officials at the Harris County Flood Control District - the main entity managing buyouts in the Houston area - say a clustered buyout approach, while preferred, isn't always possible.

Report: Flooded Home Buyouts in Texas' Harris County Less Than Strategic

A 19-year veteran of the real estate industry, Sedaghatpour's work with STRATCO saw him execute hundreds of buyouts.

New firm aims to get tenants better buyout terms

To check the robustness of these results, I use an alternative performance-adjusted benchmark and exclude LBOs carried out in a "hot" buyout market.

Bank Affiliation in Private Equity Firms: Distortions in Investment Selection

Prior to the buyout deal being agreed, the adept private equity firm will usually highlight areas of the business which it considers most likely to produce a fairly rapid increase in profitability.

Putting a PE firm's expertise to good use in an MBO; The aim of managers at the heart of any buyout is to enhance the value of the company they're acquiring as rapidly as possible in order to maximise returns to shareholders

The LIMRA data shows first-quarter buyouts in 2016 increased 21% over those in first quarter 2015, "noteworthy because buyout sales are typically low in the first quarter and increase slightly in the second and third quarters.

Smaller Firm Pension Buyouts

THE estimated average size of pension scheme buy-ins and buyouts in the UK increased from PS114m in 2010 to PS262m in 2015, says Mercer.

Pensions benefit from buy-ins and buyouts

The intention of Amber Beverage Group was to acquire at least 224,907 shares in Latvijas Balzams distillery, or a 3 per cent stake, through the voluntary buyout offer.

Voluntary buyout offer for Latvijas Balzams shares ends without result

How do buyout investors exit their portfolio companies?

Fare thee well? An analysis of buyout funds' exit strategies

Gannett's Great Falls Tribune broke the Montana news on Wednesday, reporting that Lee reporters Chuck Johnson and Mike Denniston were given the choice of a 40-percent pay cut or a buyout.

LEE, JOURNAL MEDIA MAKE JOB CUTS