leveraged buyout

American  

noun

1. 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. LBO

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leveraged buyout British  

/ ˈliːvərɪdʒd /

noun

1.  LBO.  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

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leveraged buyout Cultural  

1. The purchase of a company mainly with borrowed money on the expectation that the purchaser can repay from the company's future profits or by selling its assets. Buyers sometimes raise the money by issuing junk bonds.

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Example Sentences

Southland had gone bankrupt under the financial strain of a 1987 leveraged buyout.

From The Wall Street Journal • May 25, 2026

They are Thoma Bravo, the investment firm that took Medallia private in a 2021 leveraged buyout, and Blackstone, the largest lender to the company.

From Barron's • Mar. 27, 2026

Also at issue is the Middle Eastern money the Ellison family has been expecting to pull off Paramount’s leveraged buyout of its larger entertainment company rival.

From Los Angeles Times • Mar. 24, 2026

Warner said the Paramount offer is “in effect” a leveraged buyout and would be the biggest such transaction in history.

From The Wall Street Journal • Jan. 7, 2026

The family-owned company was acquired by Blackstone, Carlyle and Hellman & Friedman in 2021 in a $34 billion leveraged buyout.

From MarketWatch • Dec. 17, 2025

Related Words

• hostile takeover