LBO — Leveraged Buyout
Definition: Acquisition financed primarily with debt, secured against the target company's assets and cash flow. LBOs amplify both returns and risk — small operational misses can wipe out equity.
Example
In board meetings, you'll often hear something like: "Let's pull the latest LBO numbers before we make a call" — shorthand for leveraged buyout.
When you'll hear it
LBO shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to leveraged buyout — and they expect the room to already know what that means.
FAQs
What does LBO stand for?
LBO stands for Leveraged Buyout.
What does LBO mean in business and finance?
Acquisition financed primarily with debt, secured against the target company's assets and cash flow. LBOs amplify both returns and risk — small operational misses can wipe out equity.
Where will I hear LBO used at work?
LBO comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for leveraged buyout, so people assume you already know the term.