Leveraged Buyback

Filed Under »
Dictionary Says

Definition of 'Leveraged Buyback'

A significant re-purchase of a company's own shares, financed through debt. Buybacks are done for a variety of reasons: 1) To raise the stock's price; 2) to avoid over-capitalization; and 3) to defend the company from a hostile take over attempt.
Investopedia Says

Investopedia explains 'Leveraged Buyback'

In recent years, company share repurchases have been on the rise. In 2007 alone, companies in the S&P 500 spent over $580 billion buying back their own shares. Some critics however question buybacks that are made simply because a company may have a lot of free cash on its balance sheet. Quite often companies can end up hurting themselves by repurchasing stocks at inflated levels only to see their share price drop soon after the buyback.
Search results for

'Leveraged Buyback'

  • 6 Bad Stock Buyback Scenarios

    http://www.investopedia.com/articles/stocks/10/share-buybacks.asp
    ... of cash. 5. To Fend Off an Acquirer In some cases, a leveraged buyback
    can be used as a means to fend off a hostile bidder. The ...

  • Short Sales For Market Downturns

    http://www.investopedia.com/articles/stocks/07/short-sales.asp
    ... most experienced short sellers will put a stop-loss buyback price on their ... Furthermore,
    short sales allow for leveraged profits because these trades are always ...

  • Whom Should Corporations Please?

    http://www.investopedia.com/articles/basics/08/corporate-priorities.asp
    ... A buyback is a bad idea when short-term investors sway the board simply ... among them
    now) make toehold purchases, start proxy wars, or perform leveraged buyouts. ...

  • The Getty Oil Takeover Fiasco

    http://www.investopedia.com/articles/financial-theory/09/getty-oil-takeover-fiasco.asp
    ... The professionals he picked were leveraged buyout specialists and takeover artists,
    including ... specialists, the Bass Brothers, who suggested a share buyback. ...

  • Internal Rate Of Return: An Inside Look

    http://www.investopedia.com/articles/07/internal_rate_return.asp
    ... company allocates a substantial amount to a stock buyback, the analysis ... Her specialties
    include private equity, leveraged buyouts, debt and syndicated finance ...

  • Novartis Brings Alcon Into The Fold

    http://stocks.investopedia.com/stock-analysis/2010/Novartis-Brings-Alcon-Into-The-Fold-ACL-NVS-AGN-ISTA-LLY-SNY-BMY1216.aspx
    ... Simultaneously, the company will restart its multi-billion dollar buyback program
    to ... The company has leveraged its leading position in eye care to produce ...

  • Bonds And Fixed Income Articles | Investopedia

    http://www.investopedia.com/articles/tags/bonds-and-fixed-income/
    ... but there's a lot of risk and volatility involved with these leveraged ETFs ... of employee
    stock options is already accounted for in the expense of buyback programs ...

Related Articles

Partner Links