leveraged 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.

American Heritage® Dictionary of the English Language, Fifth Edition. Copyright © 2016 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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

Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014

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

Random House Kernerman Webster's College Dictionary, © 2010 K Dictionaries Ltd. Copyright 2005, 1997, 1991 by Random House, Inc. All rights reserved.

Thesaurus

Noun

1.

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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