buyout bid

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buyout bid

A company makes a buyout bid to acquire a smaller competitor.

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
buyout bid

A company makes a buyout bid to acquire a smaller competitor.

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