leveraged buyout
Borrowed-money takeover
A leveraged buyout is the acquisition of a company using borrowed money, with the target company's own assets often serving as collateral for the loans.
The acquiring party—typically a private equity firm—puts up relatively little of its own capital, financing most of the purchase through debt: The firm took the retailer private in a leveraged buyout.
Often abbreviated LBO.
Assuming command of something
- mergerCorporate combination
- corporate raidAggressive company acquisition attempt
- hostile takeoverUnwanted corporate buyout attempt
- friendly takeoverNegotiated company acquisition
tender offer · bidder · acquiree · target company · due diligence · integration · asset stripping · synergy
Temporary taking of another's
- loanBorrowed money repaid later
- lenderOne who loans money
- financingProviding capital for purchases
- interestAttention, stake, or fee
collateral · repayment · mezzanine · junk bond · high-yield · covenant · debt service · amortization
Capital for unlisted companies
- ownershipLegal right of possession
- stakeSharpened post or share
- shareholderEquity owner in corporation
- capitalWealth used for investment
sponsor · buy-in · controlling interest · equity stake · dilution · preferred stock · common stock · voting rights
Preset standard option
- bankruptcyLegal status when insolvent
- insolvencyInability to pay debts
- overleveragingExcessive debt accumulation
- downsideDisadvantage of something
volatility · distress · failure · overextension · liquidity crisis · debt burden · interest rate risk · credit risk
takeover
Assuming command of something
- mergerCorporate combination
- corporate raidAggressive company acquisition attempt
- hostile takeoverUnwanted corporate buyout attempt
friendly takeover · tender offer · bidder · acquiree · target company · due diligence · integration · asset stripping · synergy · white knight
borrowing
Temporary taking of another's
interest · collateral · repayment · mezzanine · junk bond · high-yield · covenant · debt service · amortization · refinancing
private equity
Capital for unlisted companies
- ownershipLegal right of possession
- stakeSharpened post or share
- shareholderEquity owner in corporation
capital · sponsor · buy-in · controlling interest · equity stake · dilution · preferred stock · common stock · voting rights · co-investment
default
Preset standard option
- bankruptcyLegal status when insolvent
- insolvencyInability to pay debts
- overleveragingExcessive debt accumulation
downside · volatility · distress · failure · overextension · liquidity crisis · debt burden · interest rate risk · credit risk · contagion
- takeovertakeover, take over, seize power, seizure, coup d'etat
- corporate financecost of capital, investment, capital markets, NPV, debt financing
- corporate strategymergers, acquisitions, divestitures, divestiture, synergies
- business consolidationmerger, mergers, acquisition, acquisitions, takeover
- corporate practicesmerger, acquisition, takeover, layoff, downsizing
- financial eventsmerger, acquisition, IPO, bankruptcy, takeover
leveraged buyoutdivestiture
Disposal of assets
carve-out · liquidation · sell-off · spin-off · spinoff
lever, leverage, levers, leveraged, levering, buyout, levered, buyouts