Updated on December 04, 2023Table of Contents
A buyout is a financial transaction in which a company is acquired privately by a group of investors, typically through a leveraged buyout (LBO).
What does “buyout” mean?
A buyout is the acquisition of a company’s shares or assets, allowing one party (often an individual, company, or investment firm) to gain control over the company.
What is a buyout in a job context?
In a job context, a buyout is an offer made by an employer to an employee to leave the company, often involving a lump sum payment or other benefits as an incentive to accept voluntary separation.
What is an example of a buyout?
An example of a buyout is when a private equity firm purchases a company’s majority shares, gaining control of operations. Another example is an employee receiving a buyout payment to end their contract early.
How does a company buyout work?
In a company buyout, one party purchases the majority or entirety of a company’s shares or assets, sometimes by paying a premium, to assume ownership and control.
What is a buyout payment?
A buyout payment is a sum of money offered to an employee or shareholder to agree to specific terms, such as early contract termination or selling their ownership stake.
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