buyout

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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.

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.

References in periodicals archive ?
Earlier this year, Burgis & Bullock Corporate Finance was voted Management Buy-Outs Advisory Firm of the Year at the Corporate Livewire's 2015 M&A Awards.
The phased buy-outs involve installing mechanisms to support the transfer of the business to its employees sometimes over a 10-year period, using the surpluses of the company to fund the buy-out.
The secondary buy-out of the Priory Group at pounds 925 million was the largest exit in 2011.
Insurance company buy-outs and buy-ins can be a very powerful tool for companies and trustees to manage the risks inherent in providing an occupational pension scheme and can also provide greater security of benefits for scheme members.
The quarter saw the highest overall value of buy-outs in the region since the second quarter of 2005 (pounds 1.
4m when compared with 2008 - however the fourth quarter of 2009 saw signs that confidence in the region's buy-out market is returning, with the number of private equity-backed buy-outs in the region rising to pounds 155m from pounds 69m in the third quarter.
Manufacturing businesses proved to be the most popular targets for deals in the region, with five buy-outs totalling pounds 8m.
BUSINESS buy-outs in the UK are lagging way behind European counterparts with the French and Germans surging ahead, a Birmingham expert revealed.
However, although buy-outs dropped to record levels in 2009, he said there was some positive news in that in the last quarter of the year the volumes of deals picked up.
The Demon Tweeks deal in August saw an eight-strong buy-out team headed by company chief executive Jon Minshaw acquire the business which supplies the specialist parts and equipment needed by motors ports competitors.
Deloitte and Touche's David O'Flanagan insisted that the turnaround did not imply a downturn in buy-out activity so much as the unually high-value deals of the previous 12 months.
The recent exit landscape supports this mixed picture - of the 30 exits of buy-outs from receivership recorded in 2008, 19 went into receivership, seven were the subject of a trade sale and four were the subject of a secondary buy-out.