buyouts

A buyout occurs when an individual, company, or group acquires a controlling interest in another company, often purchasing enough shares to gain control of its operations and decision-making. This can be done through cash payments, stock swaps, or a combination of both. Buyouts are common in corporate acquisitions, private equity investments, or management-led restructurings. They’re typically motivated by a desire to improve the company’s performance, restructure ownership, or realize financial gains. Essentially, a buyout reshapes the ownership structure, transferring control from current owners to the new buyers.