Venture Capital and Private Equity
A buyout refers to the acquisition of a controlling interest in a company, usually through the purchase of its outstanding shares, enabling the buyer to gain significant influence or control over the target company's operations. Buyouts are common in private equity and venture capital as they allow investors to acquire undervalued companies or those needing restructuring, often leveraging debt to finance the purchase. This strategy is crucial for investors seeking high returns and involves various forms, including management buyouts and leveraged buyouts.
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