Leveraged Buyout
/ˈlɛvərɪdʒd ˈbaɪaʊt/
Definitions
- (n.) A financial transaction in which a company is acquired using a significant amount of borrowed money, with the assets of the acquired company often serving as collateral.
The private equity firm completed a leveraged buyout to gain control of the manufacturing company.
Forms
- leveraged buyouts
Related terms
See also
Commentary
A leveraged buyout typically involves complex financing structures and significant legal due diligence to address lender protections and regulatory compliance.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.