A leveraged buyout is when a company or single asset is purchased with a mixture of equity and quite a lot of borrowed money, structured in a way that the target’s money flows or assets utilized as the guarantee to secure and repay the money borrowed to buy the target company. The assets with the company being acquired utilized as collateral to the loans beyond the assets of your acquiring company. The objective of leveraged buyout is to allow companies for making large acquisitions and never having to commit a lot of capital.
Leveraged Buyout
