leveraged buyout
(redirected from Leverage Buy-Outs)Also found in: Thesaurus, Financial, Encyclopedia.
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)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:
Switch to new 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 |