Recent Examples of buyout from the Web
As a result of his form and low buyout clause of around €60m, the likes of Manchester United are said to be interested in signing the 24-year-old this summer.
According to the Football Leaks website, Firmino had a 98 million euro buyout clause in his previous contract which ran till 2020.
Before his dismissal and buyout, TCU's Form 990 from 2015 show that Johnson's total compensation for that year amounted to $2,306,594.
But that all changed when GE sold its global silicone operation, with the Waterford plant as its centerpiece, to a Wall Street investment firm in 2006 in a leveraged buyout.
His buyout clause starts at $6 million before 2019 and decreases by $500,000 each year through the 2023-24 season.
The company was acquired by private equity firms Thomas H. Lee Partners and Bain Capital Partners in an $18 billion leveraged buyout that ultimately saw debt totaling about $20 billion.
Lantern Capital Partners is a private equity company specializing in middle-market and buyouts investments in the automotive industry.
Last year, Brigham and Women’s Hospital offered buyouts to 1,600 workers in a bid to rein in costs.
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.
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
Definition of buyout for English Language Learners
: the act of gaining control of a company by buying the parts of it you do not own
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