leveraged buyout. The purchase of a publicly held corporation’s outstanding stock by its management or outside investors, financed mainly with funds borrowed from investment bankers or brokers and usu. secured by the corporation’s assets. — Abbr. LBO. [Cases: Corporations 116. C.J.S. Corporations §§ 233–240, 242.]
management buyout.
1. A buyout of a corporation by its own directors and officers.
2. A leveraged buyout of a corporation by an outside entity in which the corporation’s management has a material financial interest. — Abbr. MBO. See GOING PRIVATE.
