Buyout

Part of speech: noun

Definitions

1. An arrangement where one entity purchases the entirety of another's shares to obtain control over its operations
2. A transaction in which one business purchases another's equity to assume control over its management and assets
3. The act of acquiring complete ownership of a company by buying all its shares to gain control

Etymology: "Buyout" is a deverbal noun, meaning it was formed by turning the verb "buy out" into a noun. The verb itself is a compound of "buy" and the adverb "out," and in its sense of acquiring the whole or controlling share of something, "buy out" came first. The noun grew from that verb once speakers began using the action as a thing in its own right: a buyout is the transaction, the purchase itself. The meaning is worth noticing. A plain "buy" describes getting something for money, but adding "out" shifts the sense toward removing or displacing what was there before. Buying out a partner, for instance, means acquiring their stake so they leave the business. The noun keeps that sense of a completed, decisive purchase, which is why it is now the standard term for taking control of a company by buying its shares.

Synonyms: acquisition, purchase