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Buy-Out
Dictionary Entry

Buy-Out

A buy-out is a transaction in which a stakeholder (someone having a business or legal relationship with the target company) buys out the current shareholders of a target company by acquiring all or a certain percentage of the shares in said company. In a typical buy-out situation, either the employees (employee-buy-out, EBO) or, more often, the managers (management-buy-out, MBO) would be the acquirers/purchasers.

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