December 26, 2020

Leveraged buyout(LBO)

Leveraged buyout

  • the acquisition of another company using a significant amount of borrowed money (bonds or loans) to meet the cost of acquisition. 
    • The assets of the company being acquired are often used as collateral for the loans, along with the assets of the acquiring company.
  • The purpose of leveraged buyouts is to allow companies to make large acquisitions without having to commit a lot of capital.
https://static.seekingalpha.com/uploads/2014/9/29/19315491-14120091125228543-Musings-of-a-Banker_origin.png


No comments:

Post a Comment