leveraged buyout


Also found in: Thesaurus, Financial, Encyclopedia, Wikipedia.

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

(ˈliːvərɪdʒd)
n
(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


n.
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 ?
He has shepherded investments in leveraged buyout transactions totaling more than $5 billion in enterprise value.
According to Reuters, leveraged buyout (LBO) defaults may increase at French banks.
After witnessing the largest private equity leveraged buyout in U.
a then-recently formed venture capital and leveraged buyout affiliate of Chemical Bank, now JPMorgan Capital Partners, an affiliate of JPMorgan Chase.
3 billion leveraged buyout -- the second largest ever in the U.
In 1974, Lewis helped black investment hank Daniels & Bell complete a leveraged buyout of Cocoline Chocolate Co.
As such, the cooperation of Michael Smurfit and other key players, including CEO Gary McGann, will be a key part of any leveraged buyout by MDP.
Jordan structured the acquisition as a leveraged buyout with a covenant not to compete.
A New York investment firm and one of its executives agreed to pay nearly $3 million to settle charges that the company violated the federal Hart-Scott-Rodino antitrust law when negotiating the leveraged buyout of a nursing home chain.
Hutts, the firms CEO, told reporters that about a half a dozen investment firms have approached him to discuss an investment or leveraged buyout for the physician practice management company.
During the leveraged buyout boom of the early 1980s, many corporations were the targets of hostile takeovers.