leveraged buyout

noun

chiefly US
: a business arrangement in which someone buys a company by borrowing money based on the value of the company that is being bought

Examples of leveraged buyout in a Sentence

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In principle, the Bending Spoons business model is similar to that of many private equity and leveraged buyout firms, but analysts see some substantial differences that extend beyond the financing. Tobias Burns, CNBC, 27 July 2026

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“Leveraged buyout.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/leveraged%20buyout. Accessed 3 Aug. 2026.

Legal Definition

leveraged buyout

noun
leveraged buy·​out
-ˈbī-ˌau̇t
: the acquisition of a company usually by members of its own management using debt to finance the purchase of equity with debt to be paid by future profits or sale of company assets
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