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

A strategic buyout involves one company purchasing another to strengthen its position in the market, access new technologies, or eliminate competition. A corporate strategist might say, 'The strategic buyout of our competitor not only expands our market share but also integrates their innovative technologies into our portfolio.'

Practice Scenarios

Business

Scenario:

The local cafe chain has been growing rapidly. Acquiring it could expand our presence in the local market.

Response:

I agree with your view. A strategic buyout of the cafe chain could indeed bolster our local market presence and boost profit margins.

Product

Scenario:

The skincare brand has developed an impressive line of organic products. It would complement our existing health and wellness range.

Response:

The strategic buyout of the skincare brand could indeed solidify our position in the health and wellness segment.