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Post a RequestLeveraged Buyout Definition
Leveraged buyout – n : abbreviated LBO, a transaction
in which a leveraged buy-out firm (LBO firm or LBO shop) acquires a business,
using debt to fund at least 50% of the purchase price. This type of liquidity
event is most often seen in traditional bricks-and-mortar businesses with the
consistent cash flow necessary to support the buyer’s debt service.
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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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