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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 a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.