buy out: Idiom Meaning and Origin

What does ‘buy out’ mean?

The idiom "buy out" means to purchase the ownership or controlling interest in a company or business. It can also refer to the act of purchasing all of a company's shares or assets, effectively taking full control and ownership.

Idiom Explorer

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The idiom "buy out" is a commonly used phrase in American English. It has several different meanings and can be used in various contexts.

One possible meaning of "buy out" is related to the act of purchasing someone's share or ownership in a company or business. In this sense, it refers to acquiring complete control or majority ownership by purchasing the shares or interest of other shareholders or partners. This can occur in different situations, such as when a company wants to merge with another company or when one partner wants to leave a business partnership.

Another meaning of "buy out" is to purchase all of the remaining inventory of a particular item, usually at a discounted price. This is commonly seen in retail or sales contexts, where businesses may offer buyouts to quickly get rid of excess or outdated stock. It provides a way for companies to offload their merchandise and make room for new inventory.

Company A completed a takeover to buy Company B.

"Buy out" can also be used in a more general sense to mean purchasing something in its entirety. This can include anything from buying out a store's entire supply of a specific product to buying out a venue for a private event. The phrase implies a complete acquisition, leaving no remaining items or opportunities for others to make a purchase.

The idiom "sell down" is related to "buy out" in the context of purchasing shares or ownership in a company. While "buy out" refers to acquiring complete control or majority ownership, "sell down" refers to the opposite action of reducing or selling one's share in a company. This could happen when a shareholder decides to sell a portion of their ownership in a company, either to free up capital or to diversify their investment portfolio. "Sell down" and "buy out" are two sides of the same coin, with one party acquiring ownership while the other reduces their stake.

The idiom "go public" is also related to "buy out" in the context of company ownership. While "buy out" refers to acquiring complete control or majority ownership of a company, "go public" refers to the opposite action of a private company offering its shares to the public through an initial public offering (IPO). Going public allows a company to raise capital by selling shares to outside investors. This process can result in a dilution of ownership for existing shareholders, as they sell a portion of their shares to the public. "Go public" and "buy out" represent two different paths for a company's ownership structure, with one involving a shift towards private ownership and the other towards public ownership.

The origin of the idiom "buy out" is not entirely clear, as it is derived from the combination of the words "buy" and "out." However, it is likely that the origins lie in the basic meanings of the individual words. "Buy" refers to the act of acquiring something in exchange for money, while "out" implies a complete elimination or removal. When combined, these words form the idiom "buy out," which captures the idea of acquiring something completely or removing it from circulation.

Overall, the idiom "buy out" has versatile applications and is commonly used in situations involving business, sales, and acquisitions. Whether referring to taking complete ownership of a company, purchasing all remaining inventory, or buying something in its entirety, the phrase conveys the idea of acquiring something completely or eliminating all other options. While the exact origins may remain uncertain, the idiom continues to be widely used and understood in American English.

Example usage

Examples of how the idiom "buy out" can be used in a sentence:

  • When the company went bankrupt, a larger competitor bought out all its assets.
  • The entrepreneur decided to buy out his business partner and take full ownership of the company.
  • After negotiations, the tech giant successfully bought out the smaller start-up, acquiring their technology and talent.

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