leveraged buyout (LBO)
Definition
Acquisition of a firm by raising its purchase price mainly through borrowing secured by the same firm's assets. After the purchase, the loan is paid from the firm's cash flow and/or by selling off its assets (called 'asset stripping').
leveraged buyout (LBO) is in the Accounting & Auditing, Decision Making, Problem Solving, & Strategy and Purchasing & Procurement subjects.
leveraged buyout (LBO) appears in the definitions of the following terms: recapitalization, buyout, spinoff, stub stock and junk bond
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