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buyout

 
Dictionary: buy·out  buy-out ('out') pronunciation
also n.
  1. The purchase of the entire holdings or interests of an owner or investor.
  2. The purchase of a company or business: "If the workers do approve the buyout, their company will become the nation's largest employee-owned enterprise" (Harry Anderson).

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The purchase of a company or a controlling interest of a corporation's shares.

Investopedia Says:
A leveraged buyout is accomplished with borrowed money or by issuing more stock.

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Purchase of at least a controlling percentage of a company's stock to take over its assets and operations. A buyout can be accomplished through negotiation or through a tender offer. A Leveraged Buyout occurs when a small group borrows the money to finance the purchase of the shares. The loan is ultimately repaid out of cash generated from the acquired company's operations or from the sale of its assets. See also Golden Parachute.

One-time payment to talent appearing in a television or radio commercial, which purchases all rights to the performance in that commercial. Talent new to the profession is usually purchased on a buyout basis, since the performers lack the buying power to negotiate a residual arrangement, which would require payment every time that commercial appears. Given the life of most commercials, a buyout is usually more economical for the advertiser.

Arrangement by the owner of a building to acquire the remaining lease term of a tenant in a different building. This frees the tenant from the old lease obligations and permits him/her to negotiate a lease in the new building.
Example: Citizens' Inc., a tenant, wants to move to a new building that is currently under construction. However, Citizens' has four years left on its lease and is responsible for those payments. The new building's owner proposes a buyout whereby it would become responsible for the remaining term of the old Citizens' lease as part of the incentive it gives to Citizens' to move to its new building when construction is complete.

Wikipedia: Buyout
Top

A buyout is an investment transaction by which an entire company or a controlling part of the stock of a company is sold. A firm "buys out" a company to take control of it. A buyout can take the form of a leveraged buyout, a venture capital buyout or a management buyout. Where the company being bought out is a public company, a buyout is often called a "going private" transaction.

The term may apply more generally to the purchase by one party of all of the rights of another party with respect to an ongoing transaction between the two. For example:

  • an employer may "buy out" an employee's contract by making a single prepayment, so as to have no ongoing obligation to employ the person;
  • a landlord may buy out the remainder of a tenant's lease, effectively paying them to vacate.

Contracts may have an explicit buyout provision setting forth the terms or price. In the alternative the matter may be negotiated by the parties. If the entire operation is not purchased, the remainder is referred to as a stub.

See also


Translations: Buyout
Top

Dansk (Danish)
n. - opkøb, overtagelse af aktiekapitalen

Nederlands (Dutch)
bedrijfsovername

Français (French)
n. - prise de contrôle, rachat d'entreprise

Deutsch (German)
n. - Buyout, (Erwerb des Mehrheitsanteils einer Firma)

Ελληνική (Greek)
n. - εξαγορά

Italiano (Italian)
acquisto in blocco

Português (Portuguese)
n. - resgate (m) (de empresas ou ações)

Русский (Russian)
выкуп

Español (Spanish)
n. - adquisición o compra de una empresa por sus propios directivos

Svenska (Swedish)
n. - förvärv av ett företags majoritetsandel

中文(简体)(Chinese (Simplified))
全部买下, 买断, 全盘买下, 买通

中文(繁體)(Chinese (Traditional))
n. - 全部買下, 買斷, 全盤買下, 買通

한국어 (Korean)
n. - 매수

日本語 (Japanese)
n. - 買い占め

العربيه (Arabic)
‏(الاسم) شراء كافه الأسهم أو الحصص‏

עברית (Hebrew)
n. - ‮השתלטות, קניית רוב המניות‬


 
 
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Dictionary. The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2007, 2000 by Houghton Mifflin Company. Updated in 2009. Published by Houghton Mifflin Company. All rights reserved.  Read more
Investment Dictionary. Copyright ©2000, Investopedia.com - Owned and Operated by Investopedia Inc. All rights reserved.  Read more
Financial & Investment Dictionary. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more
Marketing Dictionary. Dictionary of Marketing Terms. Copyright © 2000 by Barron's Educational Series, Inc. All rights reserved.  Read more
Real Estate Dictionary. Dictionary of Real Estate Terms. Copyright © 2004 by Barron's Educational Series, Inc. All rights reserved.  Read more
Wikipedia. This article is licensed under the Creative Commons Attribution/Share-Alike License. It uses material from the Wikipedia article "Buyout" Read more
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