reverse leveraged buyout


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Reverse leveraged buyout

Bringing back into publicly traded status a company that had been privatized by way of a leveraged buyout.

Reverse Leveraged Buyout

The issue of stock by a company that had previously gone private through a leveraged buyout (or an acquisition financed mainly with debt). A reversed leveraged buyout often occurs when the company is having difficulty repaying the debt used for the leveraged buyout and wishes to raise capital to do so.

reverse leveraged buyout

An equity investment in a company that is troubled by excessive debt. The equity infusion produced by the buyout is intended to reduce debt to a more manageable level.
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References in periodicals archive ?
Rosenfeld, 1993, "Takeover Activity and the Long-Run Performance of Reverse Leveraged Buyouts," Financial Management 22, 46-57.
40) reports that reverse leveraged buyouts in 1991 did well in the aftermarket.
Larcker, "The Financial Performance of Reverse Leveraged Buyouts," Working Paper, University of Pennsylvania, April 1993.