leveraged buyout

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Related to Leveraged buy-outs: Management buyout

leveraged buyout,

the takeover of a company, financed by borrowed funds. Often, the target company's assets are used as security for the loans acquired to finance the purchase. The acquiring company or group then repays the loans from the target company's profits or by selling its assets. Many leveraged buyouts have been financed through junk bondsjunk bond,
a bond that involves greater than usual risk as an investment and pays a relatively high rate of interest, typically issued by a company lacking an established earnings history or having a questionable credit history.
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References in periodicals archive ?
The leveraged buy-out that saw the Glazer family taKe over Manchester United has left the club with debts of pounds 514m and fans staging angry protests.
not to mention bond-issues, leveraged buy-outs and so on)--were taking place.
In the corporate world, mergers and leveraged buy-outs have everyone looking over their shoulders.
Milken had nothing to do with merger and acquisition transactions or leveraged buy-outs.
The end of the 1980s was marked by the twin fiascos of bad junk bonds and leveraged buy-outs gone sour.
Attorneys involved with the bankruptcy say the examiner's recommendation could have wide-ranging implications for many other leveraged buy-outs, by undercutting or reinforcing their legality.
The fact is that most leveraged buy-outs are based on assumptions that never take retrenchment into account.
It might be hard to top the 80s with its friendly and hostile takeovers, leveraged buy-outs and aggressive maneuvers by foreign rubber firms in the North American market.
Earlier this year, he made clear that he hoped to use the funds as seed money to engage in leveraged buy-outs.
The same can be said for the issues encountered in accounting for foreign taxes, leases, and leveraged buy-outs.
Opus' Merchant Banking division focuses on providing capital and advisory solutions to middle market companies for mergers & acquisitions, growth capital, leveraged buy-outs, recapitalisations, and balance sheet restructurings.