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leveraged buyout
(redirected from Leveraged takeover)

   Also found in: Financial, Encyclopedia, Wikipedia 0.03 sec.
lev·er·aged buyout  (lvr-jd, lvr-jd)
n. Abbr. LBO
The use of a target company's asset value to finance the debt incurred in acquiring the company.

leveraged buyout [ˈliːvərɪdʒd]
n
(Economics, Accounting & Finance / 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
ThesaurusLegend:  Synonyms Related Words Antonyms
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


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Sam Zell, the real estate baron who called his heavily leveraged takeover of Tribune Co.
When the deal was first announced it would have been the biggest leveraged takeover in history in US dollar terms at exchange rates of the time.
The authors point to several factors for this decline, including the decreased willingness of lenders to finance highly leveraged takeovers, an improved and more predictable set of defensive measures that have reduced the strategic advantage of the hostile bid, and increased use of the acquirer s own shares as an acquisition currency, which is difficult to use in a hostile transaction.
 
 
 
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