LBO (Leverage Buy Out)

Acquisition transaction with financial and/or fiscal leverage for the repayment of acquisition debt by the results of the target group.

A LBO can take the following forms:

  • LBO (Leveraged Buy Out)
    Acquisition of a company by private equity investors associated with the managers of the acquired company, as part of a financial arrangement with a combination of equity and significant amounts of loans, and of which the payment is provided by a debit on future cash flows.

  • MBO (Management Buy Out)
    The buyout is made by the management team (one or more of its directors, from either the parent company or from the private owners).

  • MBI (Management Buy In)
    An external manager or a management team buys the company.

  • BIMBO (Buy In Management Buy Out)
    The buyout is made by an external manager in collaboration with the seller and/or with existing directors of the company.

  • OBO (Owner Buy Out)
    The buyout is made by the owner of a company, who carries out part of his portfolio while reinvesting in the holding company.