Leveraged Management Buyout

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Leveraged Management Buyout

A tactic in which the senior management of a publicly-traded company borrows heavily to buy all of the company's shares outstanding. A leveraged management buyout gives the management complete control of the company and allows it to operate without recourse to shareholders. Most management buyouts are leveraged. It is a form of going private.
References in periodicals archive ?
Leveraged management buyouts can pose particular challenges including reporting requirements which may not have been quite so onerous before - but this should also be seen as a good corporate discipline which will benefit the business if managed correctly.
NBER researchers began to study corporate restructuring in earnest in the late 1980s in the midst of a huge wave of mergers, acquisitions, and leveraged management buyouts.
Amihud, "Leveraged Management Buyouts and Shareholder Wealth," in Leveraged Management Buyouts, Y.