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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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References in periodicals archive ?
Larcker, 1996, "The Financial Performance of Reverse Leveraged Buyouts," Journal of Financial Economics 42, 293-332.
Lifting the veil on reverse leveraged buyouts: what happens during the private period?
Takeover activity and the long-run performance of reverse leveraged buyouts. Financial Management, 22(4), 46-57.
Agency costs, market discipline and market timing: evidence from post-IPO operating performance
We have also attempted to determine what factors were responsible for the positive abnormal performance following a reverse leveraged buyout. The factors we considered include the firm's ownership structure, board composition, reliance on leverage, corporate restructuring activities, and operating performance while under private ownership.
Takeover activity and the long-run performance of reverse leveraged buyouts

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