A leveraged buyout is the purchase of a company financed primarily by debt. This is a term commonly applied to a firm going private financed primarily by debt.

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A leveraged buyout (LBO) involves using a significant amount of debt to acquire a company, with the aim of generating high returns for investors by improving the company's operations and profitability. This term is typically used when a publicly traded company is taken private using a large amount of debt financing.

A Leveraged Buyout Is the Purchase of a Company Financed