Leveraged Buyout

A Leveraged Buyout (LBO) is a type of buyout in which a company sells its assets for more than their market value.

For example, Google may sell its search engine business for $12 billion to a private equity firm.

This would be an LBO because the company was not bought out by the public and instead sold its assets back to the private equity firm at a much higher price than their market value.

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