strategic-buyout

Vocabulary Word

Definition

In the business world, 'strategic buyout' is when one company buys another to get some kind of advantage. Maybe the company they're buying has something they don't, like unique technology or a big customer base.

Examples in Different Contexts

For growth and expansion, strategic buyouts allow companies to quickly enter new markets or segments by acquiring established players. A growth strategist might state, 'Our strategic buyout strategy focuses on acquiring companies that offer us immediate access to new customer bases and distribution networks.'

Practice Scenarios

Marketing

Scenario:

The young fashion brand has a strong following among millennials. Partnering with them could open up a new segment for us.

Response:

A strategic buyout of the fashion brand can definitely help us tap into the millennial market.

Tech

Scenario:

The emerging software has made quite a buzz with its advanced AI tech. Integrating it could give us a significant edge.

Response:

Yes, acquiring the software seems like a brilliant strategic buyout opportunity to enhance our technical capabilities.