Definition LBO - Leveraged Buy-out

leveraged buy-out - LBO - Leveraged Buy-out or LBO is an acquisition of a business using mostly debt and a small amount of equity. The debt is secured by the assets of the business. 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.

 
Have A Different Definition?

Want to enhance or revise the definition for this term?
Please submit your suggested change/improvement to our editorial board.