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buyout

nounC12 meaningsRare in speech; mostly a word you read · #12,616 of 15,258leans written

Other forms: buyouts

A buyout is the purchase of all of a company, often by its own managers. A management buyout, a leveraged buyout, agree a buyout.

A management buyout, or MBO, is when the existing managers buy the business they run. A leveraged buyout is one funded largely by borrowing against the company being bought, which is how private equity works and why it is controversial. The word also means paying somebody to give up a contract: a buyout clause in football. Note buy out as two words, which is the verb.

Definitions of buyout

  1. 1nounbuyoutThe purchase of all of a company.C1

    “After the buyout, the new owners changed the company's name.”

  2. 2nounpaymentA payment to release somebody from a contract.C1

    “There is a buyout clause and nobody expected it to be met.”

buyout is a purchase.

Where it comes from

Deverbal from buy out.

Etymology from Wiktionary, CC BY-SA

Practised in Phrasal Verbs, Business & Money

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