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

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

Warner had said in its letter the Paramount offer is “in effect” a leveraged buyout, given the amount of debt involved and Paramount’s smaller size relative to Netflix.

From The Wall Street Journal • Jan. 8, 2026

The structure of Paramount’s proposal was akin to a leveraged buyout, Warner said, adding that if Paramount was to pull it off, the deal would rank as the largest leveraged buyout in U.S. history.

From Los Angeles Times • Jan. 7, 2026

Medline was bought in a leveraged buyout in 2021, with Blackstone, The Carlyle Group, and Hellman & Friedman purchasing a majority stake.

From Barron's • Jan. 2, 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