English Reference

Word

buyout

Phoneticsbuy·out, stress on the first syllable

US/ˈbaɪˌaʊt/

UK/bˈaɪaʊt/

Countable noun

Definition

n. the act of buying a company or a part of a company. This usually happens when one group of people buys enough shares to take control of the business.

n. the purchase of a controlling interest in a company, often by its own management or an outside investment firm. Frequently involves the acquisition of all outstanding shares to take a public company private.

Examples

“The employees are planning a buyout of the small factory.”

“After months of negotiation, the tech giant completed its multi-billion dollar buyout of the smaller startup.”

“The management buyout was financed through a combination of private equity and high-yield debt, allowing the senior executives to regain full operational control from the parent corporation.”

Examples

simple

“The employees are planning a buyout of the small factory.”

contextual

“After months of negotiation, the tech giant completed its multi-billion dollar buyout of the smaller startup.”

complex

“The management buyout was financed through a combination of private equity and high-yield debt, allowing the senior executives to regain full operational control from the parent corporation.”

Usage

Often used in the compound forms 'management buyout' (MBO) or 'leveraged buyout' (LBO).

Real-World Examples

“But he has a contract until June 2030, a €500m buyout clause, and Atlético won’t sell him.”
The Guardian 24 Aug 2026
“Photograph: EA Games EA staff have been speaking anonymously to the industry-news site Game Developer about their concerns after the Saudi-led buyout of Electronic Arts .”
The Guardian 2 Sept 2026

Etymology

Deverbal from buy out.

Etymology adapted from Wiktionary, available under CC BY-SA 4.0.

Domain

Finance

This entry

Exam level
CambridgeCambridgeCambridge English QualificationsThe exam suite from Cambridge University Press & Assessment, from A1 Movers up to C2 Proficiency. The benchmark names double as CEFR labels.C1 AdvancedIELTSIELTSInternational English Language Testing SystemThe 0–9 band test co-owned by the British Council, IDP, and Cambridge. Used for university entry, work, and migration.7.0–8.0TOEFL iBTTOEFL iBTTest of English as a Foreign Language, Internet-Based TestETS's academic English test, the standard route for US university admissions. Scored 0–120, with a 1–6 scale since 2026.1–6 scale: 5.0–5.595–113TOEICTOEICTest of English for International CommunicationETS's workplace English test, big in Japan and Korea. Listening & Reading scores 10–990 and tops out at C1.945–990
Frequency
Occasional
Level
C1 · Advanced
Updated

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English Reference