buyout

IPA/ˈbaɪaʊt/
KK[bˈaɪˌaʊt]IPA/ˈbaɪaʊt/

buyout — noun

  • buyoutsingular
  • buyoutsplural

1. a business deal in which investors or another company take ownership of a busine

1.nounC1
Definition

a business deal in which investors or another company take ownership of a business by paying for enough shares.

Example

The bakery owners accepted a buyout from the supermarket chain last spring.

pattern: accept a buyout from [company]

A buyout of the local cinema was announced on Monday.

pattern: a buyout of [company] was announced

Common collocations
  • management buyout
  • leveraged buyout
  • buyout offer
  • buyout deal
  • buyout terms
Synonyms
  • takeover

    close in meaning, but often focuses more on the change of control itself

  • acquisition

    broader and more formal; can include buying assets, brands, or whole businesses

Grammar Patterns

a buyout of [company]

accept a buyout

buyout offer

Usage Note

Common in business news and finance writing. Often refers to a deal in which owners, managers, investors, or another company gain control by buying shares from the current owners.

Common Mistakes

The two banks announced a buyout and kept equal control.
The two banks announced a merger and kept equal control.
A buyout means one side buys control; if both sides combine as equals, it is a merger.

Word family

Synonym discussion

Sense: noun/1

A buyout usually means one side gets control of a company by purchasing enough shares from the current owners. Takeover is the closest everyday business term, but it often highlights the change of control itself and can sound more hostile in news reports. Acquisition is broader and more formal: a company can acquire another business, a brand, or specific assets, so not every acquisition is described as a buyout. Merger is different again because two businesses combine instead of one side buying control of the other. If managers purchase the company from its founders, that is a management buyout; if two equal firms join under a new structure, it is a merger, not a buyout.

buyout ↗takeover ↗acquisition ↗merger ↗

Common collocations

Nouns

Phrases

  • management buyout
  • leveraged buyout
  • buyout offer
  • buyout deal

Prepositions

Etymology

Old EnglishEnglish

Buyout was formed in English from the phrasal verb 'buy out', combining buy with out. It first referred to buying another person's share in a business, and later became a standard business noun for taking control of a company by purchasing enough ownership shares.

First known use

1907

1907, in the meaning defined at sense 1 Verb