Leveraged Buy Out

sometimes a form of Management Buy Out/MBO, other times a (hostile) take-over

to take a Publicly Held corporation private (to Privately Held), by borrowing lots of money from the debt markets (Debt Financing) (that's the "leveraged" part)

the source of the Junk Bond model

Michael Jensen: By resolving the central weakness of the public corporation—the conflict between owners and managers over the control and use of corporate resources (Principal-Agent Problem)—these new organizations are making remarkable gains in operating efficiency, employee productivity, and shareholder value.

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