Bought Out Deals is a process through which investment is being made in a company by sponsor or a syndicate of investors directly. Such direct investments are being made with the explicit understanding of taking the company public in a mutually agreed time.
In other words, an institution or whole sale investor buys share of an unlisted company with the intention of making an offer for sale to the retail public later at much higher prices.
Bought out deals are ideally suited in the circumstances when the money needs to be arranged fast and projects may suffer unnecessarily of the money is not available in time.
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