Reverse Leveraged Buyout
Barron's Finance & Investment Dictionary:
Top
Reverse Leveraged Buyout
process of bringing back into publicly traded status a company—or a division of a company—that had been publicly traded and taken private. In the 1980s, many public companies were taken private in leveraged buyouts by corporate raiders who borrowed against the companies’ assets to finance the deal. When some or all of the debt incurred in the leveraged buyout was repaid, many of these companies were in sufficiently strong financial condition to go public again, enriching the private stockholders as well as the investment bankers who earned fees implementing these deals.
| Reverse Leverage, Reverse Hedge | |
| Reverse Mortgage, Reverse Repurchase Agreement |
Investopedia Financial Dictionary:
Top
Reverse Leveraged Buyout
The action of offering new shares to the public by companies that initially went private through past LBOs.
Investopedia Says:
Companies undergoing a reverse LBO are attempting to obtain cash in order to reduce their debt to more manageable levels. This debt may have been from operating activities or from the company's previous LBO.
Related Links:
LBOs are often presented as predatory by the media, but it really depends on which side of the deal you're on. Understanding Leveraged Buyouts
In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.
Mergers And Acquisitions: Understanding Takeovers
This corporate action can be profitable for investors who know what to look for. A Guide To Spotting A Reverse Merger
When major corporate transactions have a big impact on the currency markets, you can benefit. Mergers & Acquisitions: An Avenue For Profitable Trades
Learn what corporate restructuring is, why companies do it and why it sometimes doesn't work. The Basics Of Mergers And Acquisitions
Learn how to invest in companies before, during and after they join together. The Merger - What To Do When Companies Converge
This high-risk strategy attempts to profit from price discrepancies that arise during acquisitions. Trade Takeover Stocks With Merger Arbitrage
Post a question - any question - to the WikiAnswers community:
Copyrights:
Barron's Finance & Investment Dictionary
Dictionary of Finance and Investment Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
Read more
