Meaning & use

employee buyout

noun·Advancedbusinessfinance

Last updated

UK/ɪmˈplɔɪiː ˈbaɪaʊt/
US/ɪmˈplɔɪiː ˈbaɪaʊt/

Meaning

  1. nouncountablebusinessfinance

    A situation in which the employees of a company buy a large part or all of that company, often to keep it running or to control its future.

    Grammar: Countable: an employee buyout, two employee buyouts. Often used with 'a' or 'the'.

    Patterns

    • an employee buyout of something
    • a management and employee buyout
    • the company was sold in an employee buyout

    The factory closed after the employee buyout failed.

    An employee buyout can protect jobs when an owner wants to sell.

    The staff organized an employee buyout of the local newspaper.

Word forms

pluralemployee buyouts

Common combinations

employee buyout of a company
The employee buyout of the company was completed last year.
management and employee buyout
The management and employee buyout gave workers a share of the business.
proposed employee buyout
The proposed employee buyout was discussed at the meeting.
employee buyout plan
They presented an employee buyout plan to the board.

Synonyms and how they differ

management buyout
A management buyout is when the managers, not all the employees, buy the company; an employee buyout usually involves a wider group of workers.
worker takeover
This is a less formal phrase for workers taking control of a company; 'employee buyout' is the standard business term.

Word family

buyout noun
the act of buying all or most of a company
employee noun
a person who is paid to work for a company

Commonly confused: employee buyout or takeover?

employee buyout vs takeover

A takeover is when one company buys another; an employee buyout is when the employees buy their own company.

Practice

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