LBO (Leveraged Buy-Out)

Acquisition of a company with significant recourse to bank debt, generally subscribed in a holding company specially created for the purpose of acquiring the shares of the target company.
Generic word for transactions carried out by private equity investors with: an existing (MBO), new (MBI) or combined (BIMBO) management team; with the owner (OBO); with a view to acquire further companies (Build-up)