buyout

Vocabulary Word

Definition

'Buyout' is when an individual, a group or another company buys most or all of a company's shares. This move often gives the buyer control of the company.

Examples in Different Contexts

In the social enterprise sector, a 'buyout' can enable the alignment of mission-driven organizations. An impact investor might declare, 'A strategic buyout can consolidate like-minded enterprises, optimizing resources and capacities to drive societal change more effectively.'

Practice Scenarios

Tech

Scenario:

The start-up offers a unique tech solution. This could potentially help fast track our expansion plans.

Response:

A buyout seems like our best option, allowing us to utilize their technology to enhance our product.

Accounting

Scenario:

The acquisition of another company will significantly change our balance sheet.

Response:

Okay, we need to prepare for the financial impact of this buyout on the current fiscal year.