Buyout
The purchase of a company's shares in which the acquiring party gains controlling interest of the targeted firm. Incorporating a buyout strategy is a common technique used to gain access to new markets and is one of the most common methods for inorganically growing a business. Investopedia Says:
A leveraged buyout is accomplished by borrowed money or by issuing more stock. Buyout strategies are often seen as a fast way for a company to grow because it allows the acquiring firm to align itself with other companies that have a competitive advantage in a specific area. Related Terms:
Buy, Strip and Flip
Competitive Advantage
Discount For Lack Of Marketability - DLOM
Employee Buyout - EBO
Friendly Takeover
Inorganic Growth
Management Buyout - MBO
Takeout
Takeover
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