noun

buyout

/ˈbaɪaʊt/ · say it: BY·owt

purchasing a controlling share of a company

In Business & Marketing

In more detail

1. (noun) the purchase of a company or a person's share in a company, usually for a large amount of money

2. (noun) a payment made to someone to end their contract or employment early

Examples

1. The tech company announced a buyout offer for the smaller startup.
2. The athlete received a generous buyout when she ended her contract with the team early.

How to use buyout

Buyout is a standard business and financial term used in corporate contexts to describe either the outright purchase of a company or its shares, or a financial settlement to terminate employment early. It is more formal and technical than 'purchase' and often implies significant financial transactions, particularly in private equity or when ending executive positions. The term is neutral and commonly used in news, legal documents, and professional communication.

Common phrases

hostile buyout
management buyout
leveraged buyout
buyout offer
buyout clause
complete the buyout

Synonyms

acquisition · takeover · purchase · leveraged buyout · golden handshake

Word family

buy out (verb phrase) · buyer (noun)

A common mistake

Learners sometimes confuse 'buyout' with 'buy-in', which means financial or personal investment in an idea or plan, rather than the purchase of a company or shares.

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