leveraged buyout

leveraged buyout
leveraged buyout
(LBO) A transaction where a purchaser uses the assets of the corporation to be acquired (target) as collateral for the loan to buy the stock of the target. LBOs stand a significant risk of bankruptcy because, after the transaction, they have little net worth to weather a business downturn. Unsecured creditors of a bankrupt LBO often argue that the lenders and former shareholders received a fraudulent transfer. (Bernstein's Dictionary of Bankruptcy Terminology)

United Glossary of Bankruptcy Terms 2012.


Glossary of Bankruptcy.

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  • leveraged buyout — leveraged buy·out / bī ˌau̇t/ n: the acquisition of a company usu. by members of its own management using debt to finance the purchase of equity with debt to be paid by future profits or sale of company assets Merriam Webster’s Dictionary of Law …   Law dictionary

  • Leveraged Buyout — Un financement d acquisition par emprunt, également désignée par le sigle LBO (pour l anglais leveraged buy out) consiste à racheter une société en ayant recours à de l endettement bancaire aussi appelé effet de levier. C est l entreprise… …   Wikipédia en Français

  • Leveraged buyout — Un financement d acquisition par emprunt, également désignée par le sigle LBO (pour l anglais leveraged buy out) consiste à racheter une société en ayant recours à de l endettement bancaire aussi appelé effet de levier. C est l entreprise… …   Wikipédia en Français

  • leveraged buyout — n technical when someone borrows money to buy all or most of the ↑stock of a company by promising to pay the bank back by selling the company s ↑assets if they cannot pay back the money they borrowed …   Dictionary of contemporary English

  • leveraged buyout — n. Business the acquisition of a corporation by a group of investors using mostly borrowed funds which are secured by the assets of the corporation being acquired …   English World dictionary

  • Leveraged buyout — A leveraged buyout (or LBO, or highly leveraged transaction (HLT), or bootstrap transaction) occurs when a financial sponsor acquires a controlling interest in a company s equity and where a significant percentage of the purchase price is… …   Wikipedia

  • leveraged buyout — Corporate acquisitions in which the acquiring company borrows most or all of the funds needed to finance the purchase. In a typical leveraged buyout, the buyer intends to repay the finance debt from funds gained from either the sale of assets… …   Financial and business terms

  • leveraged buyout — noun a buyout using borrowed money; the target company s assets are usually security for the loan a leveraged buyout by upper management can be used to combat hostile takeover bids • Hypernyms: ↑buyout • Hyponyms: ↑bust up takeover * * * noun, pl …   Useful english dictionary

  • leveraged buyout — UK [ˌliːvərɪdʒd ˈbaɪaʊt] / US [ˌlev(ə)rɪdʒd ˈbaɪaʊt] noun [countable] Word forms leveraged buyout : singular leveraged buyout plural leveraged buyouts business a way of taking control of a company by buying its shares using borrowed money, with… …   English dictionary

  • leveraged buyout — /ˌli:vərɪdʒd baɪaυt/, leveraged takeover /ˌli:vərɪdʒd teɪkəυvə/ noun an act of buying all the shares in a company by borrowing money against the security of the shares to be bought. Abbreviation LBO ▪▪▪ ‘…the offer came after management had… …   Dictionary of banking and finance

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