"Bootstrap financings" are buyouts financed by

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Bootstrap financings are typically buyouts that are financed by finance companies, which provide debt financing to the company being acquired. These financings often involve using the assets of the target company as collateral for the loan, hence the term "bootstrap." While junk bonds may be used as a financing source in some cases, they are not the primary funding source for bootstrap financings. Managers' own assets and new issuance of bonds are also less common funding sources for these types of deals.

"Bootstrap Financings" Are Buyouts Financed by