buy out
The term "buy out" is commonly used in business and finance to describe various scenarios involving the purchase of ownership or the termination of contracts.
Definition
C1Corporate Finance
(technical)To purchase a significant stake or the entire ownership of a company, often to gain control or change its direction.
Example
- The investors decided to buy out the struggling company to implement new management strategies.
B2Contract Termination
(general)To pay money to release someone from their contractual obligations, often ending their involvement early.
Example
- The team decided to buy out the player's contract to free up salary cap space.
B2Employee Incentives
(business)A financial incentive offered to an employee to encourage early retirement or voluntary resignation.
Example
- The company offered a buyout package to senior employees as part of its restructuring plan.
B2Business Acquisition
(general)To purchase the entire stock-in-trade and goodwill of a business.
Example
- The entrepreneur decided to buy out the small bakery to expand her food business.
Similar
Terms that have similar or relatively close meanings to "buy out":
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