Secondary Buyout

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Dictionary Says

Definition of 'Secondary Buyout'

A type of leveraged buyout in which a financial sponsor or private equity firm sells its investment in a company to another financial sponsor or private equity firm, thereby ending its involvement with the company in question. Historically speaking, secondary buyouts are often perceived to be "panic" sales and, thus, are sometimes hard to consummate. Secondary buyouts are not the same as secondary market purchases, or "secondaries," which typically involve the acquisition of entire portfolios of assets.
Investopedia Says

Investopedia explains 'Secondary Buyout'

Part of the attraction of a secondary buyout is the instant liquidity it offers. Secondary buyouts often make sense when the selling firm has already realized significant gains from the investment or when the second private equity firm can have greater benefits to the firm being bought and sold.
Search results for

'Secondary Buyout'

  • Private Equity Well Drying Up

    http://stocks.investopedia.com/stock-analysis/2007/Private_Equity_Well_Drying_Up.aspx
    ... to remind ourselves what a unique set of events brought this buyout mania to ... who
    eagerly bought the debt used to finance privatizations in the secondary markets ...

  • Are Investors Too Concerned With Dilution?

    http://stocks.investopedia.com/stock-analysis/2009/Are-Investors-Too-Concerned-With-Dilution-EK-PALM0921.aspx
    ... Article: BEXP, EK, KOG, PALM. Investors tend to have a knee-jerk sell reaction to
    a secondary offering that ... (Read about KKR's historic leveraged buyout of RJR ...

  • The Foundation Of Structured Settlements

    http://www.investopedia.com/articles/pf/09/structured-settlements.asp
    ... (For more on the secondary annuity market, read Break Out Of ... Don't get involved with
    a company that might become insolvent before paying out your buyout money. ...

  • Finding The Best Buyer For Your Small Business

    http://www.investopedia.com/articles/pf/08/business-owner-sales.asp
    ... acquisition price for anticipated revenue and cost synergies once the buyout is
    complete ... by selling the remainder of the equity stake in a secondary transaction ...

  • It Might Be Time For Some Oil Value Plays

    http://stocks.investopedia.com/stock-analysis/2009/It-Might-Be-Time-For-Some-Oil-Value-Plays-WRES-WEL-IO-PDS-BQI-HERO0417.aspx
    ... major projects include coal bed methane in the Rocky Mountains and secondary oil
    recovery ... a $230 market cap, Oil Sands Quest could be a future buyout target as ...

  • Magnum Hunter Resources Plows Ahead In Onshore United States

    http://stocks.investopedia.com/stock-analysis/2011/Magnum-Hunter-Resources-Plows-Ahead-In-Onshore-United-States-MHR0728.aspx
    ... mostly on the development of the Bakken, along with secondary development of ... assets
    here by Magnum Hunter Resources may eventually attract buyout offers from ...

  • 3 Fundamentally Sound Financials

    http://stocks.investopedia.com/stock-analysis/2010/3-Fundamentally-Sound-Financials-MFC-XLF-DFS-STU-SOR1021.aspx
    ... Buyout Surge Shares of The Student Loan Corporation (NYSE:STU) have also struggled ...
    provides loans for students in need of financing post-secondary education. ...

  • Taking Advantage Of Corporate Decline

    http://www.investopedia.com/articles/stocks/06/bankruptcy.asp
    ... them in the long term. In fact, most of them dump the shares rather quickly
    on the secondary market. Overall, this results in excess ...

  • Series 7 Study Guide - Customer Accounts - Costs And Fees ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/costs-and-fees.asp
    ... There are some differences,: LBOs: in addition to the annual management and incentive
    fees, the buyout firm may charge to the corporation that it has helped to ...

  • The Getty Oil Takeover Fiasco

    http://www.investopedia.com/articles/financial-theory/09/getty-oil-takeover-fiasco.asp
    ... The professionals he picked were leveraged buyout specialists and takeover artists,
    including ... board asked him straight out if he had a secondary agreement with ...

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