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 ?
The study showed that France was the most active market in volume with 85 buy-outs, just ahead of Germany with 76.
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.
Those are the central findings of a review carried out in a joint initiative by the Deloitte and Touche and Barclays Private Equity consultancy and the Irish Centre for Management Buy-Out Research.
Economy watchers at 3i suspect millennium bug worries are putting firms off buy-outs until after the new year.
The results show that buy-outs are more prone to failure than other types of companies, but that the risk of failure is significantly reduced if private equity companies are involved.
There were 36 buy-outs and buy-ins during the first six months of the year with three deals worth more than pounds 100m and 33 at less than pounds 25m - including five worth over pounds 10m.
Grant Thornton Corporate Finance partner Paul Oldham said he expected that an increase in the number of venture capitalists planning to increase their management buy-in or buy-out investment,increased business confidence generally,and the number of private company owners looking for an exit will be the three key drivers behind a further increase in the Welsh market this year.
BUY-OUTS in Yorkshire were valued at pounds 767m for the first quarter of 2008, it was said today.
Buy-outs enable companies to transfer pension liabilities to an insurance company for a one-off payment.
AMBITIOUS NVM Private Equity says the credit crunch will not affect its confident plans to raise pounds 14m to fund future management buy-outs.
He also launched Eastdil Corporate Panners, a commingled pension fund investment vehicle, which provided sale-leaseback financing to companies involved in leverage buy-outs and invested in the equity of those companies.