buy out
B2/C1Business/Finance; occasionally informal for the extended meaning.
Definition
Meaning
To purchase all or a controlling share of a business, shares, or someone's interest/contract, gaining complete control.
To secure release from a commitment (e.g., military service) by payment; to pay to remove unwanted participants or claims.
Linguistics
Semantic Notes
Primarily a financial/commercial term. As a verb, often used in passive constructions (e.g., 'was bought out'). The noun form is 'buyout' (one word). Implies a transfer of control or ownership, not just a simple purchase.
Dialectal Variation
British vs American Usage
Differences
No significant difference in core meaning. The spelling of related terms may vary (e.g., 'labour' in UK vs. 'labor' in US in 'leveraged buyout').
Connotations
Neutral in both, though can carry negative connotations (hostile takeover) or positive (founder cashing out).
Frequency
Equally common in business contexts in both varieties.
Vocabulary
Collocations
Grammar
Valency Patterns
[Subject] buy out [Object (person/company)][Subject] buy out [Object] of [business/contract][Subject] be bought out by [Agent]Vocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “Buy out the house (theatrical: purchase all tickets)”
- “Buy your way out (of a situation)”
Usage
Context Usage
Business
The dominant context. Refers to corporate acquisitions, M&A activity, and shareholder agreements.
Academic
Used in economics, business studies, and finance literature.
Everyday
Rare. Might be used discussing a partner leaving a small business or buying a contract out (e.g., a phone contract).
Technical
Specific in finance (LBO, MBO), sports (contract buyout clauses), and military (historical: buying out of service).
Examples
By Part of Speech
verb
British English
- The larger corporation plans to buy out the smaller startup.
- He bought out his business partner to gain full control of the company.
American English
- The investors moved to buy out the founding family's shares.
- She bought out her cell phone contract early to switch providers.
adverb
British English
- N/A
- N/A
American English
- N/A
- N/A
adjective
British English
- The buyout deal was finalized last quarter. (from noun 'buyout')
- N/A
American English
- They secured buyout financing for the acquisition. (from noun 'buyout')
- N/A
Examples
By CEFR Level
- The two friends started the cafe together, but later one decided to buy out the other.
- To leave his job early, he had to buy out his contract.
- After a leveraged buyout, the company was taken private by the investment group.
- The footballer's buyout clause was set at €50 million.
- The private equity firm executed a hostile buyout by purchasing a majority stake on the open market.
- Historically, wealthy individuals could buy out their conscription into the army.
Learning
Memory Aids
Mnemonic
Think: To buy someone OUT of the picture, so you are the only one left IN control.
Conceptual Metaphor
CONTROL IS OWNERSHIP; FREEDOM IS A COMMODITY (you can buy your way out of obligations).
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Не переводить дословно как "купить снаружи".
- Отличать от "buy up" (скупать в больших количествах).
- Соответствует русским "выкупить долю/контрольный пакет", "откупиться (от обязательств)".
Common Mistakes
- Confusing 'buy out' with 'sell out' (to betray).
- Using 'buy out' for simple purchases (e.g., 'I bought out a new car' - incorrect).
- Incorrect spelling: 'buyout' (noun) vs. 'buy out' (verb phrasal).
Practice
Quiz
In which context is 'buy out' LEAST likely to be used?
FAQ
Frequently Asked Questions
It depends. The verb is the phrasal verb 'buy out' (two words). The noun is 'buyout' (one word, a compound noun).
They are often synonyms. However, 'take over' can be more general (including hostile actions without purchase), while 'buy out' explicitly involves a financial transaction to gain control.
Yes, but less commonly. It can mean to pay for release from a commitment (e.g., a lease, military service, or a phone contract).
An LBO is an acquisition where the purchase is financed largely through borrowed money (debt), using the assets of the acquired company as collateral.