buy out

pay someone for their share of a business so you own all of it

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What does "buy sb out" mean?

To buy someone out means to purchase their ownership stake in a business, giving you greater or complete control. This typically happens when one partner wants to leave a company, when investors are paid off before a public listing, or when a larger company absorbs a smaller one by acquiring its remaining shareholders. The key idea is that the transaction targets a specific person or entity — you are buying their share, not the company as a whole. The phrasal verb is firmly at home in business and financial English, appearing in corporate reporting, legal documents, and boardroom conversations, though it also surfaces in everyday talk about small family businesses or start-up partnerships.

Examples

How to use it

buy out + person/entity

The most common pattern — the object is always the person or entity whose stake is being purchased, never the company or shares themselves.

The venture capital firm bought out the remaining co-founders before the merger was finalised.

buy + pronoun + out

When the object is a pronoun, it must come between the verb and the particle.

Her business partner wanted to continue expanding internationally, so she decided to buy him out.

buy + short noun phrase + out

Short noun phrases can also be placed between the verb and the particle, a natural pattern in conversation and informal business talk.

The board agreed to buy the silent partner out at a valuation both sides considered fair.

person/entity + be bought out

The passive is very natural, especially in journalism and financial reporting, where the focus falls on the entity being acquired rather than the buyer.

The minority shareholders were bought out at a premium before the company's stock market listing.

plan/offer/agree + to buy out + person/entity

The infinitive form is commonly used after verbs expressing intention, negotiation, or agreement.

The private equity group has agreed to buy out the founding family ahead of a planned restructuring.

Common Collocations

minority shareholdersbusiness partnerco-founderinvestorrivalstakeholder

Common Mistakes

Wrong object — using the company or shares instead of a person

The object of 'buy out' must be the person or entity whose stake you are purchasing, not the company or the shares themselves. Using the company as the object produces unnatural English in this sense.

✗ They wanted to buy out the company before the IPO.
✓ They wanted to buy out their remaining investors before the IPO.
Confusing 'buy out' with 'buy off'

'Buy out' refers to a legitimate commercial transaction — purchasing someone's ownership stake. 'Buy off' means to bribe someone to stop them from acting against you, which is illicit. The two are not interchangeable.

✗ The CEO tried to buy off his co-founder to gain full control of the company.
✓ The CEO tried to buy out his co-founder to gain full control of the company.
Using the present continuous for a routine or completed transaction

The present continuous sounds unnatural with 'buy out' unless you are specifically describing an ongoing negotiation. For completed deals or general statements, use the simple past or simple present instead.

✗ The firm is buying out minority shareholders every quarter as part of its strategy.
✓ The firm buys out minority shareholders regularly as part of its strategy.

Usage

This phrasal verb is formal and belongs to business and financial English. The related noun 'buyout' is used even more frequently in this context (e.g. 'a management buyout').

Frequently Asked Questions

Can 'buy out' be used to talk about small businesses, or is it only for big corporations?

It works equally well for small businesses and large corporations. You might hear 'She bought out her business partner' about a two-person start-up just as naturally as a headline about a private equity acquisition. The scale of the deal doesn't change which phrasal verb to use.

What's the difference between 'buy out' the verb and 'buyout' the noun?

They refer to the same concept but function differently. 'Buy out' is the verb form used in sentences describing the action, while 'buyout' (or 'buy-out') is the noun, often appearing in fixed phrases like 'management buyout' or 'leveraged buyout'. In financial reporting, the noun form is actually more frequent than the verb.

Does 'buy out' always mean one party ends up with full ownership?

Not necessarily — it means you acquire someone's specific stake, which increases your share of ownership. If there are multiple shareholders, buying out one of them gives you their portion but not necessarily 100% of the company. Full ownership only results if you buy out every other shareholder.

Is 'buy out' used in both British and American English?

Yes, it's standard in both varieties. The noun form is spelled 'buyout' in American English and sometimes 'buy-out' in British English, but the phrasal verb itself is used identically in both.

Can 'buy out' describe a situation where someone is forced out, or does it always imply agreement?

It can describe both consensual and forced transactions. A shareholder might be bought out willingly, or they might be bought out against their wishes as part of a hostile takeover. The phrasal verb itself is neutral on whether the party being bought out agreed to the deal.

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