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

See Examples For:

leveraged buyout

The private-equity firm, alongside Jared Kushner’s Affinity Partners and Saudi Arabia’s Public Investment Fund, completed its acquisition of videogame developer Electronic Arts earlier this month via a $55 billion leveraged buyout.

From MarketWatch ● Aug. 13, 2026

It is thought to be the largest leveraged buyout in history, meaning a significant part of it is paid for with borrowed money, which the company will have to pay back.

From BBC ● Aug. 4, 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

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 ● Jan. 8, 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

Related Words

• hostile takeover