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

---

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

---

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.

---

Example Sentences

At what became Drexel Burnham, Gary was part of the Milken inner circle, working on leveraged buyouts and trading convertible securities.

From The Wall Street Journal

Its sale to the private equity group in 2021 was at the time one of the biggest leveraged buyout transactions since the global financial crisis.

From Barron's

Carter sold his stake in the company around 1968, and would go on to be an early pioneer of the leveraged buyout, creating a new fortune buying up industrial companies.

From The Wall Street Journal

Tom Hicks, who died at 79, parlayed an early mastery of leveraged buyouts to create one of the world’s first modern professional sports empire.

From MarketWatch

Announced in September, the $55-billion deal for EA would be the biggest leveraged buyout in history.

From Los Angeles Times

Related Words

• hostile takeover