Home : Terms : Article : Calculators Advertising : Contact us
Home > Terms > Accounting > Leveraged Buy Out

Term: Accounting -> Leveraged Buy-Out
Term:

Leveraged Buy-Out

Definition:

Leveraged Buy-Out is a transaction used for taking a public corporation private, financed through the use of debt funds: bank loans and bonds. Because of the large amount of debt relative to equity in the new corporation, the bonds are typically rated below investment grade, properly referred to as high-yield bonds or junk bonds. Investors can participate in an LBO through either the purchase of the debt (i.e., purchase of the bonds or participation in the bank loan) or the purchase of equity through an LBO fund that specializes in such investments.

Related terms:

Limited-Term Position

Internal Revenue Bulletin

Useful articles:
»Enterprise Portals - The Next Big Thing
»Sales Training - Where Do We Go From Here?
»An Introduction To Accepting Credit Cards On The Internet
»Practical Tips from Leaders


Loan reduction
Hidden expenses
Marketing calc


Browse by categories
Accounting
Advertising
Banking
Bankruptcy
E-Commerce
Economics
Finance
Law
Investment
Insurance
Marketing
Real estate
Statistic
Trade
Purchasing


ABCDEFGHIJKLMNOPQRSTUVWXYZ

Featured Articles:
Marketing
The sales profession today needs people with integrity, honesty, and the ability to develop trusting relationships with customers, support staff, suppliers and management.

Let's look a... [ more... ]

Management
Executive Summary

Strategic planning is not something that only large companies do.  Smaller and medium-sized companies are just as likely to be doing it as larger companies.
... [ more... ]

Marketing
Your industry’s major trade show is coming up. Now is the time to start preparing. If one of your exhibit goals is to get more, high-quality sales leads, consider using these techniques.
... [ more... ]
  Disclaimer | Privacy | Terms of useCopyright © 2004-2005 E-terms.com