BUYOUT

buyout,n. The purchase of all or a controlling percentage of the assets or shares of a business. Cf. MERGER(8). — buy out,vb.

leveraged buyout.The purchase of a publicly held corporation’s outstanding stock by its management or outside investors, financed mainly with funds borrowed from investment bankers or brokers and usu. secured by the corporation’s assets. — Abbr. LBO. [Cases: Corporations  116.

C.J.S. Corporations §§ 233–240, 242.]

management buyout. 1. A buyout of a corporation by its own directors and officers. 2. A leveraged buyout of a corporation by an outside entity in which the corporation’s management has a material financial interest. — Abbr. MBO. See GOING PRIVATE.[Blacks Law 8th]