A leveraged buyout is a transaction in which a publicly traded company is converted into a privately held firm.

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A leveraged buyout (LBO) typically involves a group of investors, including private equity firms, purchasing all outstanding shares of a publicly traded company and taking it private. The company then becomes privately held, with ownership shared among the investors. The purchase is often financed primarily through the use of debt, hence the term "leveraged" in the name.

A Leveraged Buyout Is a Transaction in Which a Publicly