buyout investment & finance definition
The purchase of a company. See also leveraged buyout.
The purchase of all the stock of a company, owned by a single investor or by a group of investors.
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A buyout, in finance, is an investment transaction by which the ownership equity of a company, or a majority share of the stock of the company is acquired. The acquiror thereby "buys out" control of the target company.
Buyout
Financial sponsor - Management buyout - Divisional buyout
Venture ...
Leveraged buyout or LBO occurs when a company acquires another company using a significant amount of borrowed money (bonds or loans) to meet the cost of acquisition.
A leveraged buyout (or LBO) occurs when a financial sponsor gains control of a majority of a target company's equity through the use of borrowed money or debt.
Leveraged Buyout
The economic recession that began in late 2007 brought about an end to the boom of leveraged buyouts (LBO).
A leveraged buyout, or LBO, is the purchase of a company using a large amount of debt -- much of it short-term bank borrowing secured by the assets of the company itself.
Management Buyout (MBO)
What It Is:
A management buyout (MBO) occurs when the current management of a company acquires a controlling interest or the entire interest in a company from existing shareholders.
Management buyout
Taking a company private or off the exchange by management's purchase of outstanding shares.
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Strategic buyout
Definition:
Acquisition of another firm in order to realize some operational benefits which will result in increased earnings. ...
Buyout
Purchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buyout is done with borrowed money.
Buyout Funding
Funds provided to enable a corporation to acquire another enterprise or product line or business. In the corporate world all major deals are leveraged, that is, funded by someone else.
Do Buyouts have a positive or negative affect on your shares? Hi,
I have some shares bought in an iron ore exploration company.There are talks that another well established mining company may buy them. Would this ...
Buyout rumors, how should you use them? Simple logic says that if you find out about a buyout rumor, you are probably one of the last to know.
The buyout rumors didn't really make any sense when they came out (as analysts and many stock websites said) and I don't see IMAX as a buyout target in the future (unless a company like DLB goes after them).
LEVERAGED BUYOUT. An acquisition of a company financed largely by debt.
LIMITED OFFERING. An offering of securities exempt from registration due to exemptions for the size of offering and the number of purchasers.
Management Buyout - Management Buyout is when the managers and administrators of a corporation buy the controlling interest in a company from an existing shareholder.
Management Buyout - MBO
Master Limited Partnership - MLP
Management Discussion and Analysis - MD&A ...
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Leverage Buyout: The purchase of a company by a small group of investors largely financed by debt.
Leveraged Buyout Acquisition transaction in which borrowed funds in the form of issued debt are used to gain control of a company by purchasing its stock.
Leveraged buyout Undertaking debt to finance the takeover of a company.
Leveraged stock Stock that is purchased with credit, as in a margin account.
Liability A financial obligation, debt, claim, or potential loss. Compare to asset.
Leveraged buyouts (LBOs) create a special type of company that typically uses high-yield bonds to buy a public corporation from its shareholders, often for the benefit of a private investment group that may include senior managers.
LEVERAGED BUYOUT
occurs when a small group borrows the money to finance the purchase of shares in an acquired firm. The loan is ultimately repaid out of cash generated from the purchased firm's operations, or from the sale of its assets.
Leveraged buyout (LBO)
A transaction used to take a public corporation private that is financed through debt such as bank loans and bonds.
Strategic Buyout: An acquisition based on analysis of the operational benefits of consolidation, rather on the paper value of assets. A strategic buyout focuses on how the companies fit together and anticipates enhanced long-term earning power.
When a leveraged buyout is the means of orchestrating a friendly takeover of a company, the investors usually do so with an eye to restructuring the corporation and continuing operations.
LBO (Leverage Buyout) A corporate restructuring where the existing shareholders sell their shares to a small group of investors. The purchasers of the stock sue the firm's unused bet capacity to borrow the funds to pay for the stock.
management buyout The purchase of a controlling interest of a firm by an outside investor who leaves management unchanged. management company The firm that organizes, manages, and administers a mutual fund.
A leveraged buyout or restructuring financed through subordinated debt, such as preferred stock or convertible debentures. It is popular in mergers and acquisitions, because the transaction is financed by expanding equity, as opposed to debt.
Junk bonds were tremendously popular in the generation of leveraged buyouts and corporate liquidations (otherwise known as the 1980's). Lately, they have staged a slight comeback with a potentially disastrous outcome.
In late 1994 SNPL became a buyout target with an offering price of about $14, indicating the excess of overvalue ($32) to which investors in a buying frenzy had driven the stock.
E - Earnings Yield, Economic Indicators, Efficient Market Hypothesis, Eligible Securities, Employee Buyout, Employee Participation, EPS or Earning Per Share, Equity Shareholders, Euro, Eurobond, Eurocurrency, Eurodollar, European Community, ....
The potential of targeted drugs, shortening of cycle-times, and possibilities of buyout provide a powerful case for investing in the biotechnology sector. So how does one play the biotech cycle?
Read the news and stay informed about the markets. You need to keep abreast of developments in the markets, like buyouts, takeovers, and financial reports for major organizations. You need to have a sound idea of what is going on in the markets.
Junk bonds became ubiquitous in the 1980s by investment bankers, such as Michael Milken, as a financing mechanism in mergers and acquisitions. In a leveraged buyout (LBO) an acquirer would issue junk bonds to help pay for an acquisition and then use ...
One way of reducing the risk is through the illegal use of inside information is obvious, and in fact risk arbitrage with regard to leveraged buyouts was associated with some of the famous financial scandals of the 1980s such as those involving ...
In other cases, a corporation may face regulatory hurdles in expanding its business and spin off a unit to be in compliance. Sometimes, a group of employees will assume control of the new entity through a buyout, ...
Usually involves fairly stable, mature companies with good cash flows. Equity money for the LBO often comes from the investment banker or LBO specialist that arranges the buyout and underwrites the debt issue.
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