Have you heard the saying, “If you can’t beat them, buy them.”? It may sound funny, but it’s actually quite serious for those in the business world.
A buyout occurs when a person or a group makes an investment in a company that’s significant enough to give them ownership equity or a majority share. When this happens, the existing equity holders of that particular company are replaced by the acquirer who thus “buys” them out.
Buyouts, in many cases, usually include having to purchase the outstanding debt of the said company as well.
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