Buyouts

Term Main definition
Buyouts

Acquisitions of all or a majority, controlling interest of a target company, usually by an outside investor or group of investors.

Financial investors who do buyouts include Leveraged Buyout (LBO) funds, Management Buyout (MB)) funds and many multi-strategy private equity funds.  A buyout that employs some debt financing is referred to as an "LBO" or "leveraged buyout".  If and only if the buyout is led by the existing senior management team of the target company is it referred to as a "management buyout" or "MBO" or sometimes a "management-led buyout".