buy out

buy out definition - business

buy out

  1. To purchase all the stock of a company or all the stock of a company owned by one investor or by a group of investors. For example, corporate management may decide to buy out an investor in order to halt a potential takeover.
  2. To terminate a contract before its scheduled termination date by reaching a monetary agreement satisfactory to the parties involved.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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