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

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