Updated: Aug 20, 2021

Change in control of a company through its previous shareholders being bought out by new owners. These may already be connected with the firm in a management buy-out the firm is bought by its existing managers. A buy-out may alternatively be undertaken by outsiders. Finance may come from the purchasers’ own resources, or from loans; in a leveraged buy-out part of the price is raised by fixed-interest loans.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.