Buyout

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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 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.

RELATED TERMS
  1. Management Buyout - MBO

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  4. Target Firm

    A company which is the subject of a merger or acquisition attempt. ...
  5. Employee Buyout - EBO

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