Buyout vs. Buy Out
“Buyout” is the closed noun for an acquisition or controlling purchase. “Buy out” is the two-word phrasal verb for buying another party’s interest or, in some contexts, paying to be released from a contract.
Use “buyout” as the noun for an acquisition or purchase that gives control or ownership. Use “buy out” as the verb for purchasing another owner’s interest or paying to end an obligation.
Key details
Choose the right form
| Meaning / situation | Construction | Decision |
|---|---|---|
| noun for an acquisition or purchase of an ownership interest | buyout | use the one-word noun |
| verb for purchasing another owner’s interest or paying to end an obligation | buy out | use the two-word phrasal verb |
Quick tests
Word-class test
Is the expression naming the transaction rather than describing the act of purchasing?
If yes: Use “buyout.”
If no: Use “buy out” when the sentence needs a verb.
Caveat: Specific legal or financial terms may have additional definitions; this guide covers the general writing distinction.
Examples
The board approved the buyout.
The one-word form is a noun.
The partners agreed to buy out the departing owner.
The two-word form is the verb.
A buyout offer could allow the company to buy out minority holders.
The sentence shows the noun and verb forms side by side.
Further guidance
Core difference
Use the documented noun or modifier form when naming a thing, result, event, or concept; use the spaced form when the words function as a verb.
Fast Test
If the expression can take ordinary verb tense or inflection in the sentence, the spaced verb form is usually the relevant choice.
Variant Boundary
Cambridge distinguishes closed “buyout” as a noun from the two-word phrasal verb “buy out.”
Sources and evidence
Sources are shown with the role they play in this guide. Historical or style-sensitive claims are kept within the evidence boundary described above.
- Buyout — Cambridge Dictionary (opens in a new tab)Cambridge Dictionary · Closed noun “buyout” for obtaining control/ownership by purchase
- Buy out — Cambridge Dictionary (opens in a new tab)Cambridge Dictionary · Two-word phrasal verb “buy out” for purchasing another owner’s interest or releasing a contract by payment