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 corporate finance, a 'buyout' is a strategy to gain control of a company and potentially bring significant financial returns. A financial analyst might say, 'The proposed buyout could offer synergistic benefits and enhance shareholder value, but the associated risks must be meticulously evaluated.'

Practice Scenarios

Branding

Scenario:

The distinctive brand image of this company could enhance our brand perception.

Response:

A buyout of that brand might lift our own brand reputation and create synergies.

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.