leveraged buyout

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Related to Leveraged takeover: 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 ?
The Glazers' PS790m leveraged takeover of United in the summer of 2005 mobilised the more militant sections of the Old Trafford support.
Out of Europe in the group stage, Roy Keane booted out, Ruud van Nistelrooy quickly following, sponsors Vodafone making a quick exit, a club ladened with debt following the Glazer family's leveraged takeover.
Hated by significant sections of the United support, who they antagonised with their heavily leveraged takeover in 2005, the Glazer family have tended to shy away from publicity.
The family's 2005 leveraged takeover was valued at $1.