reverse leveraged buyout investment & finance definition
The process of turning a privately owned company, or
former division of a company, that previously had been a publicly traded
company back into a publicly traded company. The leveraged buyouts of the 1980s
turned many publicly owned companies into private companies that were saddled
with a large debt to pay for the buyout. Once those debts were repaid, the
owners of the company were able to increase returns by taking the company
public again.
See reverse leveraged buyout in Wall Street Words
An equity investment in a company that is troubled by excessive debt. The equity infusion produced by the buyout is intended to reduce debt to a more manageable level.
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