A buyout is when someone or an organization purchases another company or asset. This can happen through negotiation and agreement between the two parties involved.
When we talk about buyouts, it's often in relation to business deals. Imagine a big company wanting to take over a smaller one. The small company might sell its shares to the bigger one for a certain amount of money, effectively transferring ownership. Buyouts can also occur when an individual buys out a partner or stakeholder, gaining full control over the venture.
In some cases, a buyout can be seen as a rescue operation where a struggling business is saved from financial troubles by being acquired by another company or investor. This might mean that jobs are secured and the company gets to continue operating under new management.
(finance) The acquisition of a controlling interest in a business or corporation by outright purchase or by purchase of a majority of issued shares of stock.
