Buyout/Acquisition

A stage in the maturity of a business, or a situation created by special circumstances, where a product line, business segment, or entire business is purchased by an outside company or perhaps by the existing management of the business. The process involves thorough valuations of the target business, sophisticated structuring and extensive negotiations of the terms of the transaction. A firm may specialise in providing these services and may arrange for the placement with other firms and institutions, which may be required to complete the transaction. (Also see Leveraged Buyout and Mergers and Acquisitions)