Buy Out – Meaning and Examples

Have you ever heard that a big company purchased a smaller one completely? Or that a business partner paid their co-owner to take full control? In English, we say they bought them out. This practical phrase—“to buy out”—means to pay someone to take full ownership of a business, property, or asset, or to pay to release someone from a contract or obligation.

What Does “Buy Out” Mean?

“Buy out” means to purchase someone’s share in a business, property, or agreement so you gain full control—or to pay a sum to release someone (or yourself) from a commitment like a contract or lease. Think of it like paying to remove a partner or obligation completely. The phrase isn’t about shopping—it’s about ownership and freedom through payment.

When to Use It

Use this phrase in neutral or professional conversations when discussing business deals, partnerships, real estate, or contracts. It’s common in news, workplace talks, or personal finance discussions. This phrase is widely understood in both formal and informal English—but always relates to money and ownership.

Example Sentences

The tech giant bought out the startup for $50 million.
She bought out her business partner and now runs the café alone.
He paid to buy out his car lease early.
They offered to buy him out of his contract so he could join the new team.

Mini Dialogue

Alex: “Is your brother still co-owning the gym?”

Jamie: “No, I bought him out last year. It’s all mine now.”

Common Mistakes to Avoid

Don’t confuse “buy out” with simply purchasing something new. It specifically involves paying to take over someone else’s share or to end a binding agreement—not just buying a product.

❌ Don’t say: “I bought out a new laptop.” (You just bought it!)
✅ Do say: “I bought out my roommate’s share of the apartment.”

Practice Tip

Next time you hear about a company acquisition or a partner leaving a business, listen for “buy out.” Try saying: “They bought out the founder’s shares.” It’s a natural way to talk about ownership changes in English.

Final Note

Now you can use “buy out” to talk clearly about ownership, partnerships, and contracts! It’s a precise, real-world phrase used in business and everyday life. Keep using it—and remember, sometimes the best way forward is to buy out the past.

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