Leveraged Management Buyout

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.
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These include the leveraged management buyout of Glass Systems Limited, the sale of Unit Superheater Engineering Limited and last month's sale of 27 Innkeeper Wales pubs and hotels to the Cardiff brewer SA Brain.
Danish and Dutch processors are thought to be in the running, although a leveraged management buyout is also a possibility.
The leveraged management buyout - a strategy in which financial specialists and corporate executives jointly participated in taking undervalued (really undermanaged) assets private with high levels of debt financing - is a happier story, demonstrating what good could happen when managerial and shareholder interests were brought more closely back into alignment for the purpose of improving long-term equity value.
Last week's resignation of Best Buy's founder Richard Schulze gave rise to the rumors of a leveraged management buyout, although Schulze did not formally announce his intent regarding his 20% stake in the company.
designer and manufacturer of innovative niche market display devices, today announced that its Board of Directors had approved the sale of the Company's Wintron Technology division located in Howard, Pennsylvania through a leveraged management buyout transaction.
The figures represented the fourth year of independent trading for Accantia, which was formed from a leveraged management buyout from pharmaceutical giant Smith & Nephew.
TA Associates, with IMI's current management team, acquired a majority interest in IMI from its founder in 1997 in a leveraged management buyout.
Semiconductor Components Group (SCG), which announced a leveraged management buyout from Motorola Semiconductor Products Sector in May, is the world's leading supplier of analog, logic and discrete components with shipments in 1998 totaling 15 billion products.
Founded in 1994 as the result of a leveraged management buyout from Great American Broadcasting Company, Global Access is headquartered in Boston, Massachusetts, and maintains offices in Denver, Kansas City, London, Los Angeles, Pittsburgh and Washington, D.
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.