leveraged buyout

Definition of "leveraged buyout"
  1. This happens when a company is purchased, typically by its own management team, using borrowed money to cover the cost of acquiring equity. The borrowed money is then repaid from future profits or the sale of the company's assets
How to use "leveraged buyout" in a sentence
  1. The board was considering a leveraged buyout as a viable option for the future of the company.
  2. During the leveraged buyout, the management team bought the company using debt which was to be repaid through profits.
  3. The firm went through a leveraged buyout, and the debt was planned to be covered by the sale of its assets.

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