Leveraged buyout

A leveraged buyout (LBO) is a financial transaction in which a company or a group of investors acquires another company using a significant amount of borrowed funds or debt. In an LBO, the acquired company's assets are often used as collateral for the borrowed funds, and the goal is to use the company's cash flows or assets to repay the debt over time, typically with the intention of improving the company's financial performance and eventually selling it for a profit.