leveraged buyout

the purchase of a company with borrowed money, using the company's assets as collateral, and often discharging the debt and realizing a profit by liquidating the company. Abbreviation: LBO
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World English Dictionary
leveraged buyout (ˈliːvərɪdʒd)
LBO a takeover bid in which a small company makes use of its limited assets, and those of the usually larger target company, to raise the loans required to finance the takeover

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Dictionary.com's 21st Century Lexicon
Main Entry:  leveraged buyout
Part of Speech:  n
Definition:  the purchase of a controlling interest in a company by its management but using outside capital
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American Heritage
Cultural Dictionary
leveraged buyout (LBO)

The purchase of a company mainly with borrowed money on the expectation that the purchaser can repay from the company's future profits or by selling its assets. Buyers sometimes raise the money by issuing junk bonds.

The American Heritage® New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Example sentences
Breakup fees are arrangements for a leveraged buyout participant to receive a payment if a transaction falters.
We have a leveraged buyout funding program that could work in your scenario.
He ran the company's leveraged buyout group and was later co-head of its investment banking division.
In a typical leveraged buyout, a private equity firm establishes a fund and obtains capital commitments from investors.
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