purchase of at least a controlling percentage of a company's stock in order to take over its assets and operations. A buyout can be accomplished through negotiation or through a tender offer.
purchase of at least a controlling percentage of a company's stock to take over its assets and operations. A buyout can be accomplished through negotiation or through a tender offer. A Leveraged BuyOut occurs when a small group borrows the money to finance the purchase of the shares. The loan is ultimately repaid out of cash generated from the acquired company's operations or from the sale of its assets.
one-time payment to talent appearing in a television or radio commercial, which purchases all rights to the performance in that commercial. Talent new to the profession is usually purchased on a buyout basis, since the performers lack the buying power to negotiate a residual arrangement, which would require payment every time that commercial appears. Given the life of most commercials, a buyout is usually more economical for the advertiser.
arrangement by the owner of a building to acquire the remaining lease term of a tenant in a different building. This frees the tenant from the old lease obligations and permits him/her to negotiate a lease in the new building.
Example: Citizens' Inc., a tenant, wants to move to a new building that is currently under construction. However, Citizens' has four years left on its lease and is responsible for those payments. The new building's owner proposes a buyout whereby it would become responsible for the remaining term of the old Citizens' lease as part of the incentive it gives to Citizens' to move to its new building when construction is complete.
