leveraged buyout

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

/ 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

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

Affinity Partners last week closed a $55 billion deal with private-equity firm Silver Lake and the Saudi Public Investment Fund to take over videogame maker Electronic Arts, the largest leveraged buyout of all time.

Read more on The Wall Street Journal

Electronic Arts EA -0.00%increase; green up pointing triangle is saying ”game over” to Wall Street in the largest leveraged buyout of all time.

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Videogame maker Electronic Arts is in advanced talks to go private in a roughly $50 billion deal that would likely be the largest leveraged buyout of all time, according to people familiar with the matter.

Read more on The Wall Street Journal

The Ineos owner acknowledges the Glazers, who took control of United courtesy of a leveraged buyout in 2005, get "a bad rap".

Read more on BBC

It is understood to be the largest leveraged buyout in history - where a significant amount of the purchase is financed by borrowing money.

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Related Words

• hostile takeover 
• takeover