Leveraged Buyout. Takeover of a company or controlling interest in a company,...
See leveraged buyout.
An MBO in which the equity capital is supported by a very large amount of debt. See gearing. LBOs were common in the US in the 1980s and for a time were popular in the UK.
This is the acquisition of an existing company by a team of directors from the company itself or from outside the company, helped by investors. Buy-out of a company with a leverage effect from the bank. This arrangement means that a company can be bought whilst limiting the contribution of equity capital. Dividends distributed by the operating company to the acquisition holding allow the repayment of the debt to the lending establishments at the time of the buy-out.
A buyout in which the New Coâ€(tm)s capital structure incorporates a particularly high level of debt, much of which is normally secured against the companyâ€(tm)s assets.
a buy-out or acquisition of a business using mostly debt and a small amount of equity. The debt is secured by the assets of the business.
Take over transaction largely financed through funds proved by third parties. The management holds less than 10% of company shares.
Takeover of a company by external or internal investors. This type of corporate acquisition is characterized by the fact that little equity is used. The largest share of the capital required for the acquisition comes from bank loans and / or the issuance of bonds (due to occasionally high risk, these bonds generally have high-yield or junk bond status).
LBO is an abbreviation of the term leveraged buyout, a technique which enables the acquiring company to take over a targeted firm despite limited funds on hand. The target firm's assets or future profit, bank loans, and the issuance of low-rated, high-yield junk bonds are used as leverage to raise the necessary funds. In the U.S., the number of LBOs contracted rapidly declined in the 1990s because brokerage houses strong in LBOs successively went bankrupt. But the market has been reviving over the past few years on the back of brisk economic activity and higher stock prices.LBOs have not become popular in Japan because of the high-risk nature of financing them. One way to reduce the risk is to repay the lending by securitizing the target company's assets.
Leveraged Buy-Out, an American term. The takeover of a company by investors who use the company's own assets as collateral to raise the money which finances the bid. Normally the loans are then repaid either from the company's cash flow, or by selling some of its assets.
Abbreviation for Leveraged Buy-out.
A fund investment strategy involving the acquisition of a product or business, from either a public or private company, utilising a significant amount of debt.
A takeover of a corporation in which the acquirer uses borrowed funds. The target firm's assets are commonly used to secure the acquirer's loan. However, they may also use their own assets as collateral. A company's management might also use this technique to takeover their own company--that is, the management takes the company from being publicly owned to privately owned. In most LBOs, shareholders will receive a premium above the security's current market value. See: Acquisition; Collateral; Current Market Value; Takeover
Leveraged Buy-Out. Borrowing money to buy a company with gearing expected to be covered by profits, or selling off part of the company
Abbreviation for leveraged buyout.
Leveraged Buy Out. takeover financed to a large degree by debt that is secured, serviced and repaid through the cash flow and assets of the acquired company. Typically, an LBO is financed predominantly by bank debt and low quality bonds, and to a minimum degree by equity. Its extreme leverage makes an LBO dependent upon a stable economy and stable interest rates, as well as a stable cash flow from the acquired company for its success.