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
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This is when a company's management team buys all the company's shares and thereby takes complete control of the company. This is called a management buy-out ( MBO).There are several variants of a MBO. Financial Services Glossary
leverage( d) buyout
These occur where the purchase price is beyond the financial resources of the managers and the bulk of the acquisition is financed by loan capital provided by other investors. Financial Services Glossary
Similar to the above but all employees are offered a stake in the new business. Financial Services Glossary
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1. when a person or organization buys a business:
• The company has accepted a buyout offer of $44.50 a share.
emˌployee ˈbuyout also ˌstaff ˈbuyout FINANCE
when employees buy the company they work for:
• One of the airline's unions is refusing to participate in an employee buyout.
ˌleveraged ˈbuyout FINANCE
when a person or organization buys a company using a loan borrowed against the company's assets, some of which may then be sold to pay off the loan:
• With debt taken on in a $4.9 billion leveraged buyout, the company could not afford to pay all its bills.
when a company's top managers buy the company they work for:
• The computer company is to be relaunched following a management buyout of its Dutch manufacturing plant.
2. FINANCE when a person or organization buys all the shares in a company owned by a particular shareholder:
• The company said it was continuing to negotiate a buyout of minority stakeholders.
3. HUMAN RESOURCES money given to someone to persuade them to leave a company:
• The airline plans to cut its payroll by 5,000, mainly through buyouts.
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buyout UK US /ˈbaɪaʊt/ noun [C]
► FINANCE a situation in which a person or group buys most or all of the shares belonging to a company and so gets control of it: lead/propose/negotiate a buyout »
As Managing Director, he led the buyout that created the firm three years ago.
»a voluntary/hostile buyout
»buyout offer/bid/price
→ See also EMPLOYEE BUYOUT(Cf. ↑employee buyout), LEVERAGED BUYOUT(Cf. ↑leveraged buyout), MANAGEMENT BUYOUT(Cf. ↑management buyout)
Financial and business terms. 2012.