Leveraged Buyout (LBO)

The leveraged buyout (LBO) is a company takeover in which the buyer pays the previous owner essentially by taking out outside capital. After the buyer has the property rights, the buyer will liquidate parts of the company or sell non-essential assets to quickly repay the debt.
A takeover company is often set up to carry out the transaction, which can exclude personal liability on the part of the buyer if the company form is chosen accordingly. A special form of the LBO is the leveraged management buyout, in which the management acts as the purchaser.

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Further explanations for the first letter L