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.
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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.
Takeover activity and the long-run performance of reverse leveraged buyouts. Financial Management, 22(4), 46-57.
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.