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leveraged buyout

leveraged buyout

7 8.5
Buying a company mostly with borrowed money and using its assets as security for the loan
  • noun
  • /ˈlɛvərɪdʒd ˈbaɪˌaʊt/
  • Specialized
translation icon : compra apalancada
  • And finally, leveraged buyouts, where the fund uses a large amount of debt to purchase an entire company.
  • leveraged buyouts and takeovers
  • leveraged buyout firm
  • leveraged buyout companies

And when I think of PEI, think of big SAS, leveraged buyouts or healthcare roll UPS.

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Examples

  • In 2022, the leveraged buyout of a struggling electronics company revitalized its operations.

  • So I think it is more than fair to question his decision to purchase companies through a leveraged buyout.

    Blog text (1)
  • In addition, they invested in leveraged buyouts where returns were better than in venture capital.

    Academic text (1993)
  • Bain Capital used leveraged buyouts to take over companies.

    Blog text (28)
  • So, when high-yield financing was cheap, you saw a surge in leveraged buyout activity.

    Blog text (6)
  • But you don't consider taking over a company in a leveraged buyout, borrowing millions against that company's credit and equipment.

    Blog text (1)
  • Romney soon switched Bain Capital's focus from startups to the relatively new business of leveraged buyouts.

    Blog text (18)
  • In 1988, drugstore chain Revco went under when it couldn't meet its debt payments on a $1.6 billion leveraged buyout engineered by Salomon Brothers.

    Blog text (4)
  • The leveraged buyout allowed investors to acquire the manufacturing firm using mostly borrowed funds.

  • A successful leveraged buyout can lead to significant changes in company management and strategy.

Synonyms

buyout
vsleveraged buyout
  • Specialized
53 4.7

The purchase of a company or most of its shares to take control

is financed mainly with borrowed money using the target assets as collateral
takeover
vsleveraged buyout
49 4.7

Gaining control of a company by buying its shares or merging with it

involves buying control but specifically uses heavy borrowing and collateral
takeover bid
vsleveraged buyout
  • Jargon
4 4.2

An offer to buy enough shares in a company to gain control

is an acquisition form that instead relies on borrowed funds and asset collateral
tender offer
vsleveraged buyout
  • Specialized
2 7.5

An offer to buy a company's shares at a higher price than the market

instead focuses on buying control using borrowed capital and collateral
buyout bid
vsleveraged buyout
  • Specialized
1 5.9

An offer to buy all the shares a person or company owns in a business

is completed by using loans secured against the acquired company's assets
strategic buyout
vsleveraged buyout
  • Specialized
7.1

The purchase of one company by another to gain business benefits

focuses on using borrowed funds and collateral rather than strategic motives

Surface Forms

Morphology

leveraged + buyout

The noun phrase is directly compositional: 'leveraged' (financed using leverage/borrowed funds) modifies 'buyout' (an acquisition), so the meaning — an acquisition carried out mainly with borrowed funds — is derivable from the parts. Although 'leveraged' is a financial term, the adjective+noun combination follows a standard, predictable pattern, making it transparent to learners who know both constituents.

Etymology

The term leveraged buyout comes from the picture of a simple tool: leveraged refers to a lever, which lets you move something very heavy with little force, and a buyout is when someone buys a whole company. In business, the 'lever' idea means using 'borrowed money' to help a buyer buy out the company, so the phrase means buying a company mainly with 'loans'.