A buy-back transaction

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A buy-back transaction involves a seller agreeing to repurchase an asset from the buyer at a later date, typically at a predefined price or rate. This is commonly used in the context of technology transfer, where a company may sell a manufacturing plant to another company under the agreement that the seller will repurchase a portion of the output produced by the plant. This arrangement can provide the buyer with access to new technology and production capabilities, while also ensuring a steady stream of revenue for the seller.

A Buy-Back Transaction