leveraged buyout

(redirected from Leveraged buy-outs)
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Related to Leveraged buy-outs: Management buyout

lev·er·aged buyout

 (lĕv′ər-ĭjd, lĕv′rĭjd)
n. Abbr. LBO
The use of a target company's asset value to finance the debt incurred in acquiring the company.

leveraged buyout

(Banking & Finance) a takeover bid in which a small company makes use of its limited assets, and those of the usually larger target company, to raise the loans required to finance the takeover. Abbreviation: LBO

lev′eraged buy′out

the purchase of a company with borrowed money, using the company's assets as collateral, and often discharging the debt and realizing a profit by liquidating the company. Abbr.: LBO
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.leveraged buyout - a buyout using borrowed money; the target company's assets are usually security for the loan; "a leveraged buyout by upper management can be used to combat hostile takeover bids"
bust-up takeover - a leveraged buyout in which the target company's assets are sold to repay the loan that financed the takeover
buyout - acquisition of a company by purchasing a controlling percentage of its stock
References in periodicals archive ?
Opus' Merchant Banking division focuses on providing capital and advisory solutions to middle market companies for mergers & acquisitions, growth capital, leveraged buy-outs, recapitalisations, and balance sheet restructurings.
His practice focuses on private equity-backed leveraged buy-outs, management buy-outs/buy-ins, public bids, corporate M&A and recapitalizations.
Previously, he was employed in the commercial banking industry, where he focused primarily on leveraged buy-outs.
Venture capital and private equity industry - introduction" is a three-day course that focuses on the key aspects of venture capital transactions and leveraged buy-outs (LBOs).
Deidre routinely represents buyers, shareholders and sellers in financial and strategic acquisitions of all types from leveraged buy-outs, stock acquisitions, joint venture formations and public takeovers to licensing transactions and co-development/co-promotion agreements.
and European financings covering acquisitions, leveraged buy-outs, fund financing, real estate financing and asset-based loans.
This transaction was one of the first full leveraged buy-outs in the food industry.
The loans held in CLOs are high-yielding, and are generally used in leveraged buy-outs, to finance the acquisition of a company by a private equity firm.
Whether you could see private equity getting involved or an investor from outside the UK it's very questionable, because if you were going to buy out Ladbrokes a high level of debt is likely to be used and the appetite for leveraged buy-outs isn't what it was five years ago.
The recent history of Bulgarian Telecommunications Company (BTC) is a textbook case of leveraged buy-outs gone wrong.
In his blueprint for restoring financial stability to football Lord Sugar has recommended a ban on leveraged buy-outs.
Gaillard, giving evidence to the culture, media and sport committee in London, said: "The leveraged buy-outs for many clubs end in disaster - just take Liverpool where you have owners who came, contracted debt, bought out the previous owners and saddled the club with the debt.