reverse leveraged buyout

Also found in: Acronyms.

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.
Mentioned in ?
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.