LBO
Abbreviation with 2 meanings
| Stands for | Leveraged buyout |
|---|---|
| Meanings | 2 |
| Categories | Business & Finance, Medical |
LBO has two meanings. It stands for Leveraged buyout (finance) or Large bowel obstruction (gastroenterology).
Meanings of LBO at a glance
| # | LBO stands for | Context |
|---|---|---|
| 1 | Leveraged buyout | Business & Finance › Finance |
| 2 | Large bowel obstruction | Medical › Gastroenterology |
1. Leveraged buyout
Business & Finance · Finance Abbreviations
Acquisition of a company financed largely with borrowed money, typically 50 to 70 percent of the price, with the target's own assets and cash flows used to secure and repay the debt. Private equity firms use LBOs to amplify equity returns and usually aim to sell or float the company within three to seven years.
Example: The take-private was structured as an LBO, with $6 billion of term loans and bonds on top of $4 billion of sponsor equity.
The 1988-89 buyout of RJR Nabisco by KKR, chronicled in the book Barbarians at the Gate, is the most famous LBO. Returns come from debt paydown, EBITDA growth and multiple expansion. The heavy leverage leaves LBO companies vulnerable in downturns, and some, such as Toys "R" Us, ended in bankruptcy.
2. Large bowel obstruction
Medical · Gastroenterology Abbreviations
Blockage of the colon, caused mainly by colorectal cancer, followed by volvulus and diverticular strictures. It develops more gradually than small bowel obstruction, with distension and constipation; a competent ileocecal valve can create a closed loop that risks cecal perforation.
Example: Sigmoid mass with LBO, cecum 11 cm; colorectal surgery consulted for diverting colostomy versus stent.
A cecal diameter above about 10–12 cm raises concern for impending perforation. Sigmoid volvulus can often be untwisted endoscopically before elective surgery. Acute colonic pseudo-obstruction (Ogilvie syndrome) mimics LBO without a mechanical cause and may respond to neostigmine.
Related abbreviations
More finance abbreviations
- IBD – Investment banking division
- ICR – Interest coverage ratio
- IOI – Indication of interest
- IRR – Internal rate of return
- LOI – Letter of intent
- LP – Limited partner
- LTM – Last twelve months
- M&A – Mergers and acquisitions
See all 88 finance abbreviations →
More gastroenterology abbreviations
- IBS – Irritable bowel syndrome
- IBS-C – Irritable bowel syndrome with predominant constipation
- IBS-D – Irritable bowel syndrome with predominant diarrhea
- IPAA – Ileal pouch-anal anastomosis
- LES – Lower esophageal sphincter
- LGIB – Lower gastrointestinal bleeding
- MASH – Metabolic dysfunction-associated steatohepatitis
- MASLD – Metabolic dysfunction-associated steatotic liver disease
See all 85 gastroenterology abbreviations →
This entry is for general education and is not medical advice. Abbreviation use varies between institutions; always confirm in context.