Buy out is a term that is widely used in the business world. It is a process of acquiring a company or a significant portion of its shares by paying a premium price to the existing shareholders. In this article, we will explore the definition and meaning of buy out, its origin, synonyms, antonyms, and examples of how it is used in sentences.
Definitions
A buy out is a process of acquiring a company or a significant portion of its shares by paying a premium price to the existing shareholders. It is a transaction that gives the buyer the right to control the acquired company’s operations, assets, and liabilities. A buy out can be initiated by the existing management team, a group of investors, or an external party.
Origin
The term buy out has its roots in the English language. It is a combination of two words, “buy” and “out.” The word buy means to acquire something in exchange for money, while the word out means to remove or eliminate something. The term buy out was first used in the late 19th century.
Meaning in different dictionaries
According to the Oxford Dictionary, a buy out is “the purchase of a controlling share in a company or the purchase of all the shares of a company by the existing management or an external party.”
According to Merriam-Webster, a buy out is “the purchase of a controlling interest in a business or corporation by its own managers or by an outside group.”
Associations
The term buy out is often associated with mergers and acquisitions, private equity, and venture capital. It is a common strategy used by companies to expand their operations, enter new markets, or acquire new technologies.
Synonyms
Some of the synonyms of buy out include takeover, acquisition, purchase, and merger.
Antonyms
The antonyms of buy out include sell off, divestment, and spin-off.
The same root words
The same root words as buy out include buy, bought, buyer, and buying.
Example Sentences
- The management team is planning a buy out of the company’s shares to gain control of its operations.
- The private equity firm made a buy out offer to acquire the company’s assets.
- The shareholders agreed to the buy out proposal, and the deal was closed.
- The company’s founders decided to sell their shares in a buy out deal with a group of investors.
- The buy out transaction was completed successfully, and the new owners took over the company’s operations.