leveraged buyout
- noun
- /ˈlɛvərɪdʒd ˈbaɪˌaʊt/
- Specialized
- 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.
- And when I think of PEI, think of big SAS, leveraged buyouts or healthcare roll UPS.
- And finally, leveraged buyouts, where the fund uses a large amount of debt to purchase an entire company.
Examples
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In 2022, the leveraged buyout of a struggling electronics company revitalized its operations.
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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.
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The leveraged buyout allowed investors to acquire the manufacturing firm using mostly borrowed funds.
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A successful leveraged buyout can lead to significant changes in company management and strategy.
Synonyms
The purchase of a company or most of its shares to take control
Gaining control of a company by buying its shares or merging with it
An offer to buy enough shares in a company to gain control
An offer to buy a company's shares at a higher price than the market
An offer to buy all the shares a person or company owns in a business
The purchase of one company by another to gain business benefits
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'.