What are Leveraged Buyouts

Leveraged buyouts are those buyouts where the person or a company buy and take control of another company with the help of debt instead of equity; leveraged buyouts differ from normal buyout is that in this type of transaction the buyer uses high proportion of debt to buy a company. In leveraged buyouts the acquirer can even use the assets of the acquired company as mortgage for the debt taken by the buyer and hence reduce the debt burden.

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