The Motley Fool: Every Sunday, Useful Tips on Investing| Financial Blog Corliss Group

Q: What’s a leveraged buyout?
A: A leveraged buyout (LBO) is when a company is bought out by another entity (or entities), using a lot of debt.
Private-equity investors are typically involved, borrowing gobs of money without using much of their own, and often using the acquiree’s assets as collateral.
The acquired company is generally taken private (i.e., it will not trade publicly on the stock market), only to go public again after some changes have been made (such as layoffs, the…
The Motley Fool: Every Sunday, Useful Tips on Investing| Financial Blog Corliss Group

See original post by Ling Bausch