Briefly explain leveraged buyout?
One of the technical questions.
- A leveraged buyout (LBO) is when a company or investor buys another company using mostly borrowed money, loans, or even bonds to make the purchase.
- The company’s acquired assets are usually used as collateral for those loans.
- Sometimes, an LBO’s ratio of debt to equity can be 90-10.
- Any debt percentage higher than that can lead to bankruptcy.
https://getyarn.io/yarn-clip/a6f29c07-639d-4ce6-a953-6b29da8419b0
https://getyarn.io/yarn-clip/a6f29c07-639d-4ce6-a953-6b29da8419b0
pretty much all the info on LBO’s you’ll need. Pretty condensed.
Wtf when I edit my comments it makes new ones oop
Eh, 90 / 10 is a rare split nowadays.
And any amount of debt can lead to insolvency, which may lead to a bankruptcy.
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