Buyouts: A Comprehensive Guide for Investors

What is a Buyout?

A buyout is a transaction in which an investor acquires a company's majority. Buyouts can be structured in various ways, from smaller equity investments to complete acquisitions. Companies often undergo buyouts for various reasons, such as to raise capital, gain access to new technologies, or facilitate a sale.

Types of Buyouts

There are several types of buyouts, including:

• Management buyouts (MBOs): When a company's management acquires a controlling interest.
• Leveraged buyouts (LBOs): Involve financing the buyout using significant debt.
• Private equity buyouts: When a private equity firm acquires a company.