Buyout

The acquisition of a controlling interest in a company, typically involving the purchase of all or most of its shares. Buyouts can be management-led, private equity-backed, or strategic acquisitions, often using borrowed money to finance the purchase.

Term emerged in corporate finance during the 1960s merger wave, combining 'buy' and 'out' to describe purchasing someone out of their ownership position. The concept gained prominence with leveraged buyouts in the 1980s when debt financing made large acquisitions possible.