leveraged buyout

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Related to Leverage Buy-Outs: Management buyouts

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)

(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

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Noun

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 ?

It seeks to make private equity investments in buy-outs, recapitalizations, growth capital, build-ups, leverage buy-outs, acquisitions, going privates, corporate divestitures, non-leveraged growth capital, later stage, mature, and emerging growth investments in middle market companies.

Silverfern Group invests in Waste Services Group

He also launched Eastdil Corporate Panners, a commingled pension fund investment vehicle, which provided sale-leaseback financing to companies involved in leverage buy-outs and invested in the equity of those companies.