The acquisition of a company using borrowed funds. In many cases, the loans for a LBO are secured by the assets of the company being acquired.
Method of purchasing outstanding STOCK of a publicly held corporation by management or outside investors, with financing consisting primarily of funds borrowed from investment bankers or brokers. See also GOING PRIVATE.
The purchase of a company by a small group of investors financed largely by debt, often in the form of junk bonds. Most often the target company's assets serve as security for the loans taken out by the acquiring firm, which repays the loans out of cash flow of the acquired company. The buyout firm maintains control by converting the acquired business from a public company to a private one.
A leveraged buyout occurs when a group of investors using borrowed money or other kinds of debt, takes control of a company.
A method of acquiring a company using a substantial amount of borrowed money.
A transaction to acquire a company or business from either a public or private entity, utilizing a significant amount of debt and perhaps very little equity. Often, post-LBO companies are private entities owned in part by their managers. Collateral for the debt financing is the assets of the acquired company.
Purchase heavily financed with debt, where the potential cash flow of the target company is expected to be sufficient to meet debt repayments.
The bidder buys the equity of a target company by using the assets of the target company itself as collateral to raise funds. Investors can participate in an LBO through the purchase of the debt (i.e., purchase of the bonds or participation in the bank loan)
Fund are raised to take over a company and that company's assets are used as collateral (or as leverage) for the borrowing. The purchaser then repays the loans out of the acquired company's cash flow. Or by selling its assets.
Corporate acquisitions in which the acquiring company borrows most or all of the funds needed to finance the purchase. In a typical leveraged buyout, the buyer intends to repay the finance debt from funds gained from either the sale of assets owned by the acquired company or from profits earned by the acquired company. The high level of debt associated with almost all leveraged buyouts makes them relatively high-risk transactions. Thus, while some bank financing is often involved, some form of junior debt is needed. The junior debt in leveraged buyout may come from a lender willing to take a subordinate position. This type of financing is often called mezzanine financing. The funds needed for a leveraged buyout may also be raised by issuing junk bonds.
The process by which a company is purchased with borrowed money, which is repaid out of cash generated from the acquired company's operations or from the sale of its assets.
A buyout in which the purchaser borrows funds to buy the stock of a company and then uses the resources of the company to repay the loan.
The acquisition of a company, usually by management, by the use of debt.
Financial transaction in which the management of a firm or a third party acquires a company either by obtaining a loan from a financial institution or by issuing junk bonds guaranteed by the company's assets.
the purchase of a company or a business unit of a company by an outside investor using mostly borrowed capital.
a buyout using borrowed money; the target company's assets are usually security for the loan; "a leveraged buyout by upper management can be used to combat hostile takeover bids"
a buyout which is achieved with borrowed money or by the issuing more stock
a tactic through which control of a corporation is acquired by buying up a majority of their stock using borrowed money
a transaction used to take a corporation private, financed to a large degree by debt that is secured, serviced and repaid through the cash flow and assets of the aquired firm
The acquisition of a controlling interest in the stock of a company by borrowing the money from public or from private sources in which capital is raised by the issue and sale of bonds (junk bonds) secured by the assets of the company.
A substantially debt-weighted financing of an Acquisition.
A transaction used for taking over a company or controlling interest in a company through the use of debt funds: bank loans and bonds. Investors can participate in an LBO through either the purchase of the debt (i.e., purchase of the bonds or participation in the bank loan) or the purchase of equity through an LBO fund that specializes in such investments.
The purchase of controlling interest in a corporation using borrowed funds.
Corporate takeover that involves using debt to buy a company, usually with very little equity or cash used in the down payment. Purchase of a company often done by the management.
Taking over a business, from a private or public company, while using the companyâ€™s assets as collateral for the loan.
An ownership change that is mostly financed by loans from banks, investors, and others.
Existing management or an outsider makes an offer to "go private" by retiring all the shares of the company. The buying group borrows the necessary money, using the assets of the acquired firm as collateral. The buying group then repurchases all the shares and expects to retire the debt over time with the cash flow from operations or the sale of corporate assets.
The purchase of a business, with financing provided largely by borrowed money, often in the form of junk bonds.
A takeover bid made not by an outsider but rather by a syndicate involving the management team of the company concerned. Typically it involves the use of large amounts of borrowed funds, to be charged on the assets of the enterprise itself, possible supplemented by equity funds from an organization specializing in packaging such deals.
A situation in which a small group of investors (which usually includes the firm's managers borrows heavily to buy all the shares of a company.
Purchase of a company by an institution using a high proportion of debt. A type of Management Buy-Out (MBO).
Takeover of a company, using borrowed funds. Most often, the target company assets serve as security for the loans taken out by the acquiring firm, which repays the loan out of the cash flow of the acquired company.
A transaction used to take a public corporation private that is financed through debt such as bank loans and bonds.
Takeover of a company or controlling interest in a company, using a significant amount of borrowed money, usually 70% or more of the total purchase price. In LBO, the acquiring company uses its own assets as collateral for the loan in hopes that the future cash flows will cover the loan payments.
Purchase of a company by an institution using a large amount of borrowed money. A great way to grow fast and then crash spectacularly in a fiery ball when the underlying businesses fail and the debt becomes crippling.
Taking over a company using borrowed funds. In many cases, the loans for a LBO are secured by the assets of the ocmpany being acquired.
A takeover of a company, using a combination of equity and borrowed funds. Generally, the target company's assets act as the collateral for the loans taken out by the acquiring group. The acquiring group then repays the loan from the cash flow of the acquired company. For example, a group of investors may borrow funds, using the assets of the company as collateral, in order to take over a company. Or the management of the company may use this vehicle as a means to regain control of the company by converting a company from public to private. In most LBOs, public shareholders receive a premium to the market price of the shares.
Leverage expresses a firm's debt to net worth. Leveraged buyouts occur when a public corporation assumes considerable debt through the issuance of junk bonds in order to reorganize itself as a narrowly held company.
The acquisition of a company in which the purchase is leveraged through loan financing, rather than being paid for entirely with equity funding. The assets of the company being acquired are put up as collateral to secure the loan.
The purchase of a controlling interest in a company using borrowed money.
The use of borrowed money to finance the purchase of a firm.
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
A transaction used for taking a public corporation private financed through the use of debt funds: bank loans and bonds. Because of the large amount of debt relative to equity in the new corporation, the bonds are typically rated below investment grade, properly referred to as high-yield bonds or junk bonds. Investors can participate in an L.B.O. through either the purchase of the debt (i.e., purchase of the bonds or participation in the bank loan) or the purchase of equity through an L.B.O. fund that specializes in such investments.
A takeover of a company using borrowed funds where assets of the acquired company are used as partial collateral for the loan.
A leveraged buyout (or LBO, or highly-leveraged transaction (HLT), or "bootstrap" transaction) occurs when a financial sponsor gains control of a majority of a target company's equity through the use of borrowed money or debt.