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Glossary · Corporate Finance and Valuation

What is Leveraged buyout (LBO)?

The acquisition of a company financed largely with debt, which is planned to be repaid from the target's cash flows.

It is the typical deal structure of private equity funds; returns come from deleveraging, operational improvement and value uplift at exit. High leverage can turn small cash flow deviations into large financial risks.

Source: Birleşme ve satın alma uygulaması

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Last updated: November 8, 2026 · This definition is for general information only.

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