DEFINITION of 'Takeout'

A slang term denoting the purchase of a company through an acquisition, merger or other form of buyout. A takeout can refer to a hostile takeover, a friendly merger, or a leveraged or management buyout.


A company is said to be "in play" if it is likely to be acquired in the future, or currently has bids from purchasers. A takeout refers to the company being taken out of play, which occurs when the acquisition has been finalized.

  1. Friendly Takeover

    A situation in which a target company's management and board ...
  2. Merger

    A merger is an agreement that unites two existing companies into ...
  3. Hostile Bid

    A specific type of takeover bid that is presented directly to ...
  4. Buyout

    The purchase of a company's shares in which the acquiring party ...
  5. Acquisition

    A corporate action in which a company buys most, if not all, ...
  6. Target Firm

    A target firm is an attractive business for a merger or acquisition ...
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  1. What is the difference between a merger and a takeover?

    In a general sense, mergers and takeovers (or acquisitions) are very similar corporate actions - they combine two previously ... Read Answer >>
  2. How long does it take for a merger to go through?

    Corporate mergers and acquisitions can vary considerably in the time they take to be completed. There are a number of individual ... Read Answer >>
  3. What can a business do to prevent a merger?

    Learn how to prevent business mergers, including hostile takeovers, that are not in consumers' best interests through the ... Read Answer >>
  4. What is considered an accretive acquisition?

    Learn about accretion and dilution in mergers and acquisitions. What makes a deal accretive, and how is earnings per share ... Read Answer >>
  5. How can I develop a profitable merger arbitrage strategy?

    Learn how to utilize a simple merger arbitrage trading strategy to profit from the typical temporary price discrepancies ... Read Answer >>
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