# buyout

/ˈbaɪˌaʊt/ (US) · /bˈaɪaʊt/ (UK) · CEFR C1 · Noun

Source: https://englishreference.com/word/buyout
Updated: 2026-05-08

## Definition

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.

For teachers: 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.

## Usage notes

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

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