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Glite Dictionary
strategic buyout

strategic buyout

7.1
The purchase of one company by another to gain business benefits
  • noun
  • Specialized
translation icon : compra estratégica
  • After evaluating the potential benefits, the board approved a strategic buyout of its main competitor.

Examples

  • The company pursued a strategic buyout to strengthen its position in the technology sector.

  • A strategic buyout often aims to capitalize on potential synergies between two firms.

  • The company completed a strategic buyout of its competitor.

  • Several strategic buyouts occurred last quarter.

  • After careful analysis, the firm executed a strategic buyout that promised to enhance its market dominance.

  • The strategic buyout enabled the acquiring company to leverage the acquired firm's resources for greater profitability.

  • Investors were excited about the potential of the strategic buyout, believing it would lead to significant growth opportunities.

Synonyms

buyout
vsstrategic buyout
  • Specialized
53 4.7

The purchase of a company or most of its shares to take control

focuses on calculated benefits from consolidation and increased future earnings
takeover
vsstrategic buyout
49 4.7

Gaining control of a company by buying its shares or merging with it

targets calculated consolidation benefits rather than simply gaining control

How Strategic

strategic buyout
  • Specialized
7.1
merger
189 3.9
buyout
  • Specialized
53 4.7

Surface Forms

strategic buyout singular
strategic buyouts plural

Morphology

strategic + buyout

The noun phrase is directly compositional: 'strategic' (pertaining to planned, goal-directed action) modifies 'buyout' (an acquisition), so the meaning 'an acquisition made for strategic benefit' is directly derivable from the parts. This adjective + noun pattern is a common, transparent construction cross-linguistically, so a B1 learner who knows both constituents should be able to infer the MWE's meaning.

Etymology

Strategic buyout combines strategic (a careful plan) and buyout (buying control of a company). One clear image is a company making a planned 'chess move' by buying a rival to gain strength or new customers, so the phrase means 'buying a company to get a clear business advantage'.