Leveraged buyout
Buying a company mostly with borrowed money secured against the company itself.
A leveraged buyout funds an acquisition largely with debt, secured against the assets and cash flows of the company being bought. The equity contribution can be a small fraction of the price, which magnifies returns if the business performs and wipes them out if it does not.
The acquired company carries the debt, so a leveraged buyout usually brings cost reduction and asset sales. Brands are among the most saleable assets, which is why buyouts often lead to portfolio changes within a few years.