Corporate Finance Analysis
A leveraged buyout (LBO) is a financial transaction where a company is acquired using a significant amount of borrowed funds to meet the cost of acquisition, typically involving a mix of debt and equity. This strategy allows investors to make large purchases without committing much capital upfront, making it a popular method for acquiring companies. The goal is often to improve the acquired company's profitability and eventually sell it at a profit, while managing debt levels to maximize returns.
congrats on reading the definition of Leveraged Buyout (LBO). now let's actually learn it.