This is an MBO in which the equity capital is supported by a very large amount of debt. See gearing. LBOs were common in the US in the 1980s and for a time were popular in the UK.

In a substantial investment, no single investor will wish to carry the whole risk. It is therefore shared among members of a syndicate. Normally, one investor takes the lead in negotiating the terms of the investment and has responsibility for finding other syndicate members. Lead investor can also be described as sole investor.

Examples of words used in the financial world to sum up the success or failure of a business - lemons ripen fast on the tree, and investments which leave a bitter taste ripen faster than good ones. See also dog and pearl.

The London Interbank Offered Rate - the rate at which banks lend to each other in London. It matters because it is the most common reference point used by banks for quoting their rates. e.g 2% over
LIBOR. (The equivalent rate for the Euro is EURIBOR)

This is a measure of the ease with which the assets of a business can be transformed into cash. Also, where companies are publicly quoted, on the stock market or on AIM, their shares are said to be liquid if they are readily bought and sold. Smaller, or less fashionable, quoted companies may find their shares lack liquidity.

When a company trades its shares on the stock market - either the London Stock Exchange or one of the other markets, such as AIM.

Large management buy-out (usually defined as involving a transaction over £10million). Whereas in a smaller MBO management teams will often hold the majority of equity shares in an LMBO the managers may have only a minority of the equity. A syndicate of investors will share the greater part of the equity. Such investors may nominate directors to sit on the board alongside managers.

The form of debt which has to be repaid at a specific time in the future, as distinct from a bank overdraft which the bank may call in at short notice.