buyout (redirected from buyouts)

Buyout

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

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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.

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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.