Buyout: meaning, definitions and examples

Best used in situations where one party purchases the entire stake or shares of a company, usually to gain full control.

• After the buyout, the company became a private entity
• The minority shareholders were bought out during the restructuring

Commonly used when one company purchases most or all of another company's shares to gain control of that company, usually as part of corporate expansion or diversification.

• The acquisition of the tech startup was finalized last week
• The company's acquisition strategy focuses on smaller, innovative firms

Often has a more aggressive connotation, typically used when one company makes a bid to assume control of another company, possibly against the wishes of the target company's management.

• The hostile takeover was met with resistance from the board
• Shareholders were happy with the takeover offer as it promised high returns

Appropriate for situations where two companies agree to combine and form a new entity. It implies a sense of partnership or collaboration without one dominating the other.

• The merger of the two pharmaceutical companies resulted in greater market share
• A merger was seen as the best way to remain competitive in the industry

Used in a business context when one company purchases a significant portion or all of another company's shares to gain control. Often mentioned in mergers and acquisitions.

• The tech giant announced a buyout of a smaller startup to expand its market reach.
• After the buyout, the company restructured its management team.

Used specifically in an employment context to refer to the payment given to an employee when they are laid off or terminated. Usually mentioned during discussions of employee rights and benefits.

• The employee received severance pay after the company downsized its workforce.
• Severance pay packages can vary depending on the duration of employment and company policies.

General term used to describe the act of providing payment or benefits for work performed, damages, or losses. Frequently used in employment and legal contexts.

• The company offers competitive compensation packages to attract top talent.
• The victim received compensation for the injuries sustained in the accident.