leveraged buyout

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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

(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
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 ?
Lawyers for creditors who plan to sue Tribune over the 2007 leveraged buyout said that following Judge Kevin Carey's approval last Friday, they would file their suits shortly.
Rumors persist that the eye-care products maker could be taken private in a leveraged buyout. But Affymetrix Inc.
LLC provided leveraged buyout financing to a portfolio company of Jefferies Capital Partners, a US-based private equity investment firm, to fund its acquisition of Murray International Metals Limited (MIM), a leading supplier of specialist steel to the oil and gas industry.
Lewis used high-yield debt, or "junk bonds," to acquire the company in a $985 million leveraged buyout, beating out such powerhouses as Citicorp, Pillsbury and Shearson Lehman Brothers.
A fairness opinion is a written and signed third-party assertion certifying--some would say rationalizing--the price of a proposed deal involving a tender offer, merger, asset sale or leveraged buyout. It usually discusses the price and terms of the deal in the context of comparable transactions, drawing attention to strategic considerations that might make a particular transaction worth more or less than others.
In essence, the court bifurcated the leveraged buyout into separate transactions--the financing arrangement and the stock redemption.
In a move that signaled the beginning of the leveraged buyout frenzy, Dart Drug Stores was taken private in a $160 million management-led leveraged buyout.
Recent private equity deals in the tanker space include OMERS Private Equity's $1.9 billion leveraged buyout of Kenan Advantage Group in 2015.
Summary: Abraaj was the largest leveraged buyout firm in Dubai
The first loan was worth USD340m and it was used to back the leveraged buyout of Smart & Final grocery chain by Apollo Global Management.
After Bloomberg reported that Monotype Imaging is working with a financial advisor to explore its strategic options after receiving takeover interest from private equity firms, JPMorgan analyst Jackson Ader says his base case valuation, even in a leveraged buyout, comes out to around $20 per share, the same as his current December 2019 price target.
have agreed to a $200 million settlement that resolves allegations of fraudulent transactions related to the company's 2007 leveraged buyout.