reverse leveraged buyout

Reverse Leveraged Buyout

The action of offering new shares to the public by companies that initially went private through past LBOs.

Notes:

Companies undergoing a reverse LBO are attempting to obtain cash in order to reduce their debt to more manageable levels. This debt may have been from operating activities or from the company's previous LBO.

See also: Debt, LBO, Stock

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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.

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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.