Definition

Noun: A public offer to purchase all or a controlling portion of the shares of a publicly traded company, or all of a person's holdings in a private asset, typically at a premium price to gain control.

Usage

A "buyout bid" is a formal, often public, proposal made by an individual, group of investors, or another company to acquire 100% or a controlling stake in a target entity. The bidder offers a specific price per share or a total sum to persuade the current owners to sell their holdings.

Examples

• The board of directors is reviewing a buyout bid from a private equity firm.
• Shareholders must decide whether to accept the lucrative buyout bid.
• The hostile buyout bid surprised the market and sent the company's stock price soaring.

Advanced Usage

• Hostile buyout bid: An offer made directly to shareholders against the wishes of the target company's management.
• Leveraged buyout bid (LBO bid): An offer to purchase a company primarily using borrowed money, with the target company's assets often used as collateral for the loans.
• Management buyout bid (MBO bid): An offer made by the company's existing executives to take the company private.

Variants and Related Words

• Buyout (n): The acquisition of a controlling interest in a company.
• Tender offer (n): A public bid to buy a substantial number of a company's shares at a fixed price, often a key part of a buyout bid.
• Takeover bid (n): A broader term for an offer to gain control of a company, which may or may not aim for 100% ownership.

Synonyms

• Acquisition offer
• Takeover offer
• Tender offer (in specific contexts)

Antonyms

• Divestiture
• Spin-off

Noun

1. a bid to buy all of a person's holdings