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 buy-in and buy-out volumes in 2017 were achieved despite the largest amount insured by a single scheme being limited to 1.2bn.
Leisure almost halved from 41 deals in 2015 to 22 in 2016 and Healthcare was lower at 21 buy-outs in 2016 after 27 in 2015.
We look forward to continuing to support entrepreneurial businesses in Warwickshire and the wider Midlands." Burgis & Bullock Corporate Finance advises business owners, directors, and management teams on acquisitions, company sales, management buy-outs and buy-ins, and the raising of finance.
Pension buy-out sales tend to be seasonal, with most of the activity occurring in the fourth quarter.
The pension payments will be made via the scheme initially, and in due course Rothesay Life will take over responsibility for paying benefits to members directly when the bulk annuity converts to a full buy-out.
757, amends the administrative code of the City of New York, redefining repeated buy-out offers as harassment.
With an annuity purchase "buy-out," assets leave the plan and the participant is handed an annuity contract.
The management of Dubai International Financial Centre-based Essdar Capital, a financial advisory, asset management and investment firm is in the process of staging a management buy-out of the business.
They found that PE-backed buy-outs showed a stronger economic performance in the period before and during the recent recession than a matched sample of private companies and listed companies.
The team, led by Andrew Connors (West Midlands) and Andy Corbett (East Midlands), will provide regionally based finance expertise, focusing on debt-only led management buy-outs, mergers, acquisitions and the restructuring of leveraged debt.
It reads: "Goldman Sachs provides advice on the full range of strategic transactions, including mergers, sell-side and buy-side advisories, leveraged buy-outs, joint ventures, strategic alliances, anti-raid and raid defenses, fairness opinions and spin-offs, split-offs, divestitures and other restructurings."
This arises because PEFs finance buy-outs by raising capital from pension and insurance funds (around 80% of PEF business is leveraged buy-outs - LBOs).