Glossary entry (derived from question below)
English term or phrase:
LEVERAGED BUY OUT (LBO)
Arabic translation:
شراء مدين ومرهون
Added to glossary by
Amer al-Azem
Sep 19, 2002 12:00
22 yrs ago
5 viewers *
English term
Palestine
LEVERAGED BUY OUT (LBO)
Non-PRO
English to Arabic
Bus/Financial
Bankruptcy
1- A transaction where a purchaser uses the assets of the corporation to be acquired (target) as collateral for the loan to buy the stock of the target. LBOs stand a significant risk of bankruptcy because, after the transaction, they have little net worth to weather a business downturn. Unsecured creditors of a bankrupt LBO often argue that the lenders and former shareholders received a fraudulent transfer.
Proposed translations
(Arabic)
| 5 | شراء مدين ومرهون |
Fuad Yahya
|
Proposed translations
1 hr
Selected
شراء مدين ومرهون
فؤاد
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Note added at 2002-09-19 14:00:13 (GMT)
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The new definition simply adds more information and nuances. The bottom line is that the buyout is based on borrowed funds and collaterals.
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Note added at 2002-09-21 12:19:17 (GMT)
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The concept is sometimes expressed as \"leveraged takeover\": اسـتيلاء مدين ومرهون
4 KudoZ points awarded for this answer.
Discussion
2-LBO (Leveraged Buyout)
A takeover of a corporation in which the acquirer uses borrowed funds. The target firm's assets are commonly used to secure the acquirer's loan. However, they may also use their own assets as collateral. A company's management might also use this technique to takeover their own company--that is, the management takes the company from being publicly owned to privately owned. In most LBOs, shareholders will receive a premium above the security's current market value.