Saturday, November 27, 2010

Leveraged buyouts

A leveraged buyout occurs when a company is acquired by another company through the use of borrowed money. In many cases, the assets of both the acquiring company and target company are used as collateral for the purchase loans. Leveraged buyouts allow companies to make large acquisitions without having to commit a lot of capital and also provide a tax shield in the form of debt payments.
More Business and Management

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