Understanding the English Phrasal Verb: How to Use Buy Out Correctly
Learning English phrasal verbs can significantly enhance your communication skills, making your English sound more natural and fluent. The phrasal verb buy out is a common and important one, frequently used in business and finance, essentially meaning to acquire ownership or control of something, often a company or shares. Understanding how to use buy out correctly will expand your vocabulary and comprehension. This article will clearly explain the different meanings of buy out, demonstrate its grammatical structures with examples, explore related phrases and synonyms, and provide practice questions to solidify your learning.
Table of Contents
What Does Buy Out Mean?
The phrasal verb buy out generally refers to the act of purchasing all the shares or interest in a company, property, or partnership, thereby gaining complete control or ownership. It often implies a significant transaction where one party effectively removes another party's stake by purchasing it. Understanding the context is crucial to grasp the specific nuance of buy out.
More: Buy Into: Understanding the Phrasal Verb & Correct Usage
Structure with Buy Out
The phrasal verb buy out is transitive, meaning it usually takes a direct object. The object can be a person, a company, or shares. It can often be separated, with the object placed between "buy" and "out," especially when the object is a pronoun.
Here are the common meanings and their typical structures:
Meaning 1: To purchase all the shares/assets of a company, thus gaining control.
This is one of the most common uses of buy out, particularly in a business context.
Structure 1 (Company as object): Subject + buy out + [company/business]
- Example 1: The larger corporation decided to buy out its smaller competitor to expand its market share.
- Example 2: After months of negotiation, they managed to buy out the family-owned business.
Structure 2 (Separable - Company as object): Subject + buy + [company/business] + out
- Example 1: The tech giant bought several promising startups out last year.
- Example 2: To prevent a hostile takeover, the board decided to buy the raiding company out by offering a premium.
Meaning 2: To pay someone to give up their share, interest, or role in something (e.g., a partnership, a contract, a lease).
This meaning focuses on removing an individual or entity from their position or claim by compensating them.
Structure 1 (Person/Partner as object): Subject + buy out + [person/partner]
- Example 1: When the partners disagreed on the company's future, one decided to buy out the other.
- Example 2: The club had to buy out the player's contract because he wanted to move to a different team.
Structure 2 (Separable - Person/Partner as object): Subject + buy + [person/partner] + out
- Example 1: She wanted to leave the partnership, so her colleagues agreed to buy her out.
- Example 2: The landlord bought the tenants out of their lease to redevelop the property.
Meaning 3: To purchase all remaining stock of a particular item (less common, but possible).
This usage implies purchasing the entire available supply of something, often to eliminate competition or secure all available units.
Structure 1 (Stock/Items as object): Subject + buy out + [the stock of an item/all available items]
- Example 1: The collector tried to buy out the entire first edition print run of the book.
- Example 2: Before the concert, scalpers attempted to buy out all the front-row tickets.
Structure 2 (Separable - Stock/Items as object): Subject + buy + [the stock/items] + out
- Example 1: The wealthy enthusiast bought all the remaining vintage cars out from the dealership.
- Example 2: The company planned to buy the remaining components out to ensure production continuity.
Understanding these structures will help you use buy out effectively and understand its meaning in various contexts. The context often makes it clear which meaning of buy out is intended.
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Related Phrases and Synonyms
While buy out is quite specific, several other words and phrases convey similar meanings, depending on the context. Knowing these can enrich your vocabulary and help you understand nuances in English.
| Synonym | Meaning | Example Sentence |
|---|---|---|
| Acquire | To gain possession of something, especially a company or significant asset. | The multinational corporation plans to acquire a smaller tech firm. |
| Take over | To assume control of something, especially a company, often through purchase. | The investment group staged a takeover of the struggling airline. |
| Purchase | To obtain something by paying money for it (a general term). | He decided to purchase all the outstanding shares of the company. |
| Gain control (of) | To obtain the power to direct or manage a company or situation. | By buying more shares, they aimed to gain control of the board. |
| Secure | To obtain or get hold of something, often with effort (e.g., shares, a deal). | She managed to secure her partner's interest in the joint venture. |
These synonyms can be useful alternatives, though buy out specifically emphasizes the act of purchasing someone's entire share or interest to remove them or gain full control.
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Practice Time!
Let's test your understanding of the phrasal verb buy out with a few questions!
Question 1: Which sentence correctly uses "buy out" in the context of acquiring a company? a) They decided to buy in the company.
b) The larger firm plans to buy out its main competitor.
c) She will buy for the shares.
d) He bought up all the candy.
Correct answer: b
Question 2: "The other partners agreed to _______ him _______ when he decided to retire." Which words complete the sentence correctly? a) buy / for
b) take / out
c) buy / out
d) sell / to
Correct answer: c
Question 3: What is the primary meaning of "buy out" when a company buys out another company? a) To sell shares to the other company.
b) To temporarily merge with the other company.
c) To purchase all the shares or assets of the other company, gaining control.
d) To invest a small amount in the other company.
Correct answer: c
Question 4: "To prevent further losses, the studio decided to buy out the actor's multi-picture contract." In this sentence, "buy out" means: a) To hire the actor for more pictures.
b) To pay the actor to end their contractual obligations.
c) To sell the contract to another studio.
d) To renegotiate the terms of the contract.
Correct answer: b
Conclusion
Understanding and correctly using the phrasal verb buy out is a valuable skill for any English learner, especially those interested in business or formal discussions. As we've seen, buy out has specific meanings related to acquiring full ownership or paying someone to relinquish their share, and its structure is relatively straightforward. By familiarizing yourself with its meanings, structures, and related synonyms, you can use buy out with confidence. Keep practicing, and you'll find it a useful addition to your active vocabulary!