What is an LBO: Leveraged Buyout

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In corporate finance, a leveraged buyout (LBO) is a transaction where a company is acquired using debt as the main source of consideration.

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Dear Friends,
I have a question:
1/ When and Why we should use LBO (Leveraged Buyout) to do M&A deal?. Thank you.

ntcuongct
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This model is essentially giving legal passage for business corruption by allowing the interest to be tax deductible. Removing that level of risk from the buyer is grounds for uncontrolled greed without any of the accountability when acquisitions go bankrupt. And let’s not forget the HUMAN BEINGS that play role in keeping the “acquisition” successful every day, what happens to them after bankruptcy?

gautamsane
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Hernandez Kenneth Martinez Carol Jackson David

AntoinetteSusie-rm
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What happens when they company can’t pay its debts?

Chefko
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I don't get it. why borrow at all if you don't have to since you lose money on fees, interest, etc., how is this a good idea if a company has the cash outright to buy another company?

evadesc
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Thomas Dorothy Williams Anthony Perez Sarah

RumanaKhanom-wn
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Thompson Patricia Jackson Scott Young John

LewisMabel-zy
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Walker Matthew Brown Nancy Hall Thomas

LeightonEdwina-kf