Recent Examples of buyout from the Web
The move is part of a $52.4 billion all-stock buyout of Fox assets by Disney (which is a majority owner of ESPN).
The Brewers Association, a trade group that promotes the interests of craft brewers, has launched a humorous initiative to crowdfund a buyout of global beer giant Anheuser-Busch InBev.
Delise Fertitta cashed out her stake in Station when the company, now called Red Rock Resorts Inc., went private in a 2007 buyout.
Stricklin said the conversations with McElwain and his agent, Jimmy Sexton, began Sunday morning, with the two sides agreeing to a settlement expected to reduce a buyout of $12.9 million.
The University of Florida issued a statement denying a report that the Gators were negotiating a contract buyout with football head coach Jim McElwain.
Those who opt for early retirement or a buyout will be out the door before the first week of the new year is over.
Fickell also has a max bonus of $625,000 and a school buyout of $9.1 million as of Dec. 1, 2017, according to the database.
The state has not found money to offer buyouts to homeowners at risk.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'buyout.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of buyout
Definition of buy out
First Known Use of buy out
Financial Definition of BUYOUT
What It Is
A buyout is the purchase of at least 51% of a company. Under a buyout, the previous ownership loses control over the company in exchange for compensation.
How It Works
The buyout process usually begins when an interested purchaser or group of purchasers makes a formal buyout offer to a company's board of directors, who are the representatives of the company's shareholders. Negotiations and/or a tender offer ensue, and the board of directors eventually either recommends that the shareholders sell their shares to the purchaser or discourages the shareholders from doing so. Company managers and directors do not always welcome buyout offers, but because the shareholders ultimately decide whether to sell the company, people consider some buyouts hostile and others friendly. Regardless, the purchaser usually pays a premium for shares that give it controlling interest in a company.
Companies, private individuals, private equity firms, pension funds, lenders, and other institutions usually conduct or supply the money for buyout transactions. Companies that specialize in buyouts (buyout firms) exist solely to fund and facilitate buyouts, and they may act alone or together on a deal. They usually get their money from institutional investors, wealthy individuals, or loans.
Buyout firms usually seek out and purchase underperforming or undervalued companies in order to "fix" them and sell them or take them public many years later. When it sells one of its companies, the buyout firm takes a commission, which it passes on to its investors. Buyout firms are also often involved in management buyouts, which are buyouts conducted by the management of the company being purchased, and they often play key roles in leveraged buyouts, which are buyouts that are funded with borrowed money.
Why It Matters
Buyouts occur for several reasons. Some occur because the purchaser believes a company's assets are undervalued and can be resold for a profit. Others occur because the purchaser believes it will receive financial and strategic benefits from the buyout such as higher revenues, easier entry into new markets, less competition, or improved operational efficiency. Ultimately, nearly all buyouts occur because the purchaser believes it can provide more value to a company's shareholders than the company's current management can.
BUYOUT Defined for English Language Learners
legal Definition of buy out
Seen and Heard
What made you want to look up buyout? Please tell us where you read or heard it (including the quote, if possible).