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. 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 LBO

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

In 1990, Weschler left New York and relocated to Charlottesville to start a leveraged buyout fund with Grace vice chairman Terry Daniels, who was also leaving the company.

From Washington Post

From 1984 to 1987, leveraged buyouts and other buybacks took more than $250 billion worth of stock out of the market, driving demand up further for what remained.

From Freakonomics

Bain Capital and its ilk were called leveraged buyout firms back then, but whatever the rubric, the business is the same.

From The Daily Beast

Actually, the former Massachusetts governor and leveraged-buyout mogul seems to have more problematic issues with this crowd.

From The Daily Beast

The cops and the smarter street people knew that Dubuque had lost part of his left ear in a leveraged buyout on University Avenue.

From The Daily Beast

Related Words

• hostile takeover
• takeover