Definitions for "Leveraged Buy-out"
An acquisition which is largely funded by debt; popular with private equity firms that often make large acquisitions with comparatively limited resources.... more on: Leveraged buy-out (LBO)
A transaction used for taking a public company private that is generally financed through the use of a high degree of debt collateralized by the company's assets.
The use of borrowed funds to purchase a company where the equity value or potential cash flow of the target company is expected to be sufficient to result in a profit for shareholders and/or meet debt repayments.