Reverse Leveraged Buyout

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Definition: Reverse Leveraged Buyout

A reverse leveraged buyout occurs when a private company which is not listed in the stock market makes an offer to buy a public company by promising to buy all the shares and assets of the company and to completely make the company private.

This type of a buyout also results in the private company using the assets of the public company as a collateral till the complete buyout finishes successfully and all the shares are transferred to the private entity. 

This results in the de-listing of the public company and it becomes a part of the private firm and thus cannot be regulated anymore by the stock market regulations.

Browse the definition and meaning of more terms similar to Reverse Leveraged Buyout. The Management Dictionary covers over 7000 business concepts from 6 categories. This definition and concept has been researched & authored by our Business Concepts Team members.

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