management buyout

management buyout definition - finance
A heavily leveraged transaction that involves management and outside investors taking a public com-pany private. The acquirers borrow a significant amount of money to purchase the company. They plan to pay the debt payments from the acquired companyÂ’s earnings.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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