leveraged buyout
nounA way to buy a company using mostly borrowed money.
The small firm was taken over in a leveraged buyout backed by a large bank loan.
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OTHER MEANINGS
2. A corporate transaction in which a buyer uses significant debt to fund the purchase of a company, often using the target's assets as collateral.
The leveraged buyout loaded the retailer with billions in debt.
3. A financial maneuver in private equity where investors acquire a public company and take it private using borrowed funds.
After the leveraged buyout, the company's shares stopped trading on the exchange.
4. A deal structure in which a small group of investors buys a business with a small equity contribution and a large amount of borrowed capital.
The leveraged buyout let the management team own the factory with only ten percent of the price in cash.