What is a buyout?
A buyout is a transaction in which a party — an individual, group of investors, management team or private equity firm — acquires a controlling interest in a company by purchasing its shares or assets. Common types include management buyouts (MBOs), leveraged buyouts (LBOs), founder buyouts and private-equity sponsored buyouts.
Buyouts are typically structured as share purchases (with full or partial cash, rollover equity, and earn-outs) and require thorough due diligence, financing arrangements, regulatory clearances (including competition and CFIUS where applicable) and post-closing integration planning.