LBOs are:
A)Also called going-private transactions
B)Financed primarily with debt
C)Have not been that common since the 1980s
D)All of the above
E)Both a and b
F)Both b and c

Question

Quizplus · Accepted Answer

LBOs or Leveraged Buyouts refer to transactions in which a company is acquired using a significant amount of debt. Such transactions are usually structured in a way where the assets of the target company are used as collateral for the debt. LBOs are often called going-private transactions because they usually involve a private equity firm acquiring a publicly-traded company and taking it private. Although LBOs were quite popular during the 1980s, they have continued to be a common means of financing acquisitions of companies even today.

LBOs Are