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leveraged buyout
noun
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
/ ˈːəɪ /
noun
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
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
The Glazers' leveraged buyout increased the gross debt listed in the accounts to £604m in 2006 - this was partially secured on the club's assets directly, and partially secured on the Glazer family's ownership shares.
Twenty years ago the Tampa-based Glazer family bought Manchester United in a controversial, highly leveraged buyout, blazing a trail for other US investors.
Around the time of the 1970s when the leveraged buyouts, Milton Friedman, all those people got going, there were still plenty of people like J.K.
The billionaire investor amassed a multimillion-dollar fortune by the 1980s through a number of leveraged buyouts financed by junk bonds sold by Michael Milken.
The detrimental effect of piling debt on a retailer in leveraged buyouts, like those for Payless, Toys "R" Us and Sears, have scared many private equity firms away from making such deals.
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