leveraged buyout

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Related to Leveraged buyouts: 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:
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 ?
hone Capital is a private-equity arm of Rhone Group specializing in middle-market leveraged buyouts, recapitalizations and partnership financings.
It is expected that French banks may be in for a financial crisis because of defaults by companies loaded up with debt after a wave of leveraged buyouts during the credit boom.
During the peak of leveraged buy-out activity in the mid-1980s, leveraged buyouts or major financial restructurings were launched with varying degrees of success by some of the biggest names in American retailing: Federated Department Stores Inc.
This simple process should not be confused with other types of going-dark transactions, such as leveraged buyouts, management buyouts or tender offers, since these transactions frequently trigger litigation and present more complex legal issues.
For a decade this billion-dollar behemoth was among the most successful leveraged buyouts.
Thus, leveraged buyouts contributed to the efficiency-and productivity-oriented business environment of the 1990s, a benefit which more than outweighed the negative effects to particular companies.
NEW YORK -- The face of chain drug retailing changed dramatically in the 1980s, when companies took on heavy debt burdens to finance merger and acquisition activity, or to take themselves private through leveraged buyouts.
Tremendous changes are occurring in how leveraged buyouts of "middle-market" companies are financed.
However, of this list, tax incentives are the most frequently discussed motivation for corporate acquisitions, especially in leveraged buyouts ([4], [8], [9], [10], [13], [14], and [20]).
The RJR Nabisco transaction represents the pinnacle of leveraged buyouts (LBOs), being more than quadruple the size of the next largest LBO on record, that of Beatrice Companies for over $6 billion.
Asquith and Wizman find similar results for a different sample of leveraged buyouts and restructurings.