Meaning of leveraged buyout

lev'eraged buy'out

Pronunciation: [key]
  1. the purchase of a company with borrowed money, using the company's assets as collateral, and often discharging the debt and realizing a profit by liquidating the company. Abbr.: LBO
Random House Unabridged Dictionary, Copyright © 1997, by Random House, Inc., on Infoplease.
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