A leveraged buyout (LBO) is an acquisition in the business ... The private equity firm is typically the private equity sponsor, meaning the firm earns a rate of return on its investment.

Ivashina, Victoria, and Anna Kovner. "The Private Equity Advantage: Leveraged Buyout Firms and Relationship Banking." Review of Financial Studies 24, no. 7 (July 2011): 2462–2498.

Communications equipment and software provider Avaya Holdings may be considering a leveraged buyout offer from a private equity firm that values the company at more than $5 billion, including debt ...