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

And those managers fell in love with software; technology now makes up more than a quarter of North American leveraged buyout funds and half of venture capital, according to MSCI.

From The Wall Street Journal

Private-equity firms frequently targeted the industry for leveraged buyouts, betting the steady revenue those companies have produced would continue to grow.

From The Wall Street Journal

Yale trimmed its portfolio of leveraged buyouts for the first time in a decade.

From The Wall Street Journal

Private-equity managers emerged as big buyers of software companies in recent years, and private-debt funds increasingly backed those firm’s leveraged buyouts.

From The Wall Street Journal

Warner said this week that Paramount’s proposed $94 billion debt and equity financing package would make its proposed takeover of Warner the largest leveraged buyout ever.

From Los Angeles Times

Related Words

• hostile takeover