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Buyout

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Dictionary Says

Definition of 'Buyout'

The purchase of a company's shares in which the acquiring party gains controlling interest of the targeted firm. Incorporating a buyout strategy is a common technique used to gain access to new markets and is one of the most common methods for inorganically growing a business.
Investopedia Says

Investopedia explains 'Buyout'

A leveraged buyout is accomplished by borrowed money or by issuing more stock. Buyout strategies are often seen as a fast way for a company to grow because it allows the acquiring firm to align itself with other companies that have a competitive advantage in a specific area.

Articles Of Interest

  1.

    Understanding Leveraged Buyouts

    LBOs are often presented as predatory by the media, but it really depends on which side of the deal you're on.

  2. The Merger - What To Do When Companies Converge

    Learn how to invest in companies before, during and after they join together.

  3. What Are Corporate Actions?

    Be a savvy investor - learn how corporate actions affect you as a shareholder.

  4. Mergers And Acquisitions: Understanding Takeovers

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  5. Activist Hedge Funds: Follow The Trail To Profit

    Learn to profit by following the lead of some of Wall Street's most ruthless investors.

  6. How The Big Boys Buy

    Learn what those in-the-know look for when acquiring a company.

  7. What happens to my call options if the underlying company is bought out?

    Typically, the announcement of a buyout offer by another company is a good thing for shareholders in the company that is being purchased. This is because the offer is generally at a premium to ...

  8. A cash buyout agreement has been announced for a stock I own, but why isn't my stock trading at a per-share price equal to the buyout price?

    The announcement of an acquisition or a merger does not necessarily mean that the deal will be resolved as originally stated. Speculation of the merger's final result will affect the state of ...

  9. The Basics Of Mergers And Acquisitions

    Learn what corporate restructuring is, why companies do it and why it sometimes doesn't work.

  10. Taking Advantage Of Corporate Decline

    A bankrupt company can provide great opportunities for savvy investors.
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