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.
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.
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
Based on WordNet 3.0, Farlex clipart collection. © 2003-2012 Princeton University, Farlex Inc.
References in periodicals archive ?
Activist Edward Bramson, who is trying to force his way on to Barclays' board, has told other top shareholders that the bank is too reliant on revenues from lending to fund leveraged buyouts of companies by private equity firms and other acquirers, the Financial Times' David Crow reports, citing sources.
Prior to joining Lariat as Associate, Sartisky was an Associate at Grey Mountain Partners, where he executed leveraged buyouts across a number of industries.
In addition, leveraged buyouts usually depend on growing earnings to determine how much debt can be serviced to complete the buyout, but Tesla has never yet produced an annual profit, so dealmakers said any buyout transaction for Tesla could probably not involve placing much more debt on the company.
hone Capital is a private-equity arm of Rhone Group specializing in middle-market leveraged buyouts, recapitalizations and partnership financings.
This book looks at the increase in leveraged buyouts (LBOs) of US companies by private equity funds prior to the slowdown in mid-2007.
According to Guido May, partner of Silverfleet Capital, the European private equity house who led the deal: "The recession proof nature of the food sector has made it possible for us to secure new debt, with the banks more willing to finance leveraged buyouts in this sector."
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.
His practice focuses on corporate finance, mergers and acquisitions, leveraged buyouts and corporate recapitalizations and restructurings relating to both public and private businesses.
"Leveraged Buyouts," to be published by Law Journal Press (New York) in October, is a two-volume, looseleaf set that is designed for lawyers who represent either buyers or sellers in LBO's.
The third category, which has come to overshadow the other two, is leveraged buyouts. Leveraged buyouts were a big deal in the late 1980s and early 1990s.
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.