buyout

buyout
buy·out /'bī-ˌau̇t/ n: an act or instance of buying out

Merriam-Webster’s Dictionary of Law. . 1996.

buyout
In the context of pensions, the securing of one or more members' benefits by purchasing an annuity from an insurance company. It is the most expensive method of securing benefits and is used to determine the employer debt that arises under section 75 of the Pensions Act 1995 on the winding up of a pension scheme. See also buy-out cost.
In the context of the acquisition of a target company or business, an acquisition of that company or business by a management team (either members of the existing team or one assembled specifically for the purpose of the buyout) financed by a combination of equity finance from a private equity provider and debt finance from financial institutions and other investors. The acquisition will be made by a newly formed special purpose vehicle owned by the management team and the private equity provider. Such acquisitions are frequently also referred to as leveraged buyouts or LBOs.
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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Look at other dictionaries:

  • buyout — uy out n. (Business, Finance) the acquisition of ownership of a company by purchasing a controlling percentage of its stock. Syn: takeover. [WordNet 1.5] …   The Collaborative International Dictionary of English

  • buyout — two words at first; to purchase someone s estate and turn him out of it, 1640s, from BUY (Cf. buy) + OUT (Cf. out). As one word, the purchasing of a controlling share in a company, from 1976 …   Etymology dictionary

  • buyout — ► NOUN ▪ the purchase of a controlling share in a company, especially by its own managers …   English terms dictionary

  • buyout — [biout΄] n. the outright purchase, usually with borrowed funds, of a business, as by the employees or management …   English World dictionary

  • buyout — purchase of a controlling interest (or percent of shares) of a company s stock. A leveraged buy out is effected with borrowed money. Bloomberg Financial Dictionary This is when a company s management team buys all the company s shares and thereby …   Financial and business terms

  • Buyout — Purchase of a controlling interest (or percent of shares) of a company s stock. A leveraged buy out is done with borrowed money. The New York Times Financial Glossary * * * buyout buy‧out [ˈbaɪaʊt] also buy out noun [countable] FINANCE 1. when a… …   Financial and business terms

  • Buyout — A buyout, in finance, is an investment transaction by which the ownership equity of a company, or a majority share of the stock of the company is acquired. The acquiror thereby buys out control of the target company. A buyout can take the form of …   Wikipedia

  • 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… …   Investment dictionary

  • buyout — UK [ˈbaɪaʊt] / US [ˈbaɪˌaʊt] noun [countable] Word forms buyout : singular buyout plural buyouts business a situation in which the managers or people employed in a company take control of it by buying all of its shares a management buyout See:… …   English dictionary

  • buyout — [[t]ba͟ɪaʊt[/t]] buyouts N COUNT: oft supp N A buyout is the buying of a company, especially by its managers or employees. It is thought that a management buyout is one option …   English dictionary

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