Match the term with its definition.
-A leveraged buyout involving the purchase of a group of similar companies with the intent of making the firms into one larger company for eventual sale or to be taken public
A)build-up LBO
B)business broker
C)bust-up LBO
D)double taxation
E)employee stock ownership plan (ESOP)
F)harvesting (exiting)
G)initial public offering (IPO)
H)leveraged buyout (LBO)
I)management buyout (MBO)
J)opportunity cost of funds
K)private equity recapitalization
L)seller financing

Question

Quizplus · Accepted Answer

A build-up LBO refers to a leveraged buyout strategy where a private equity firm acquires multiple smaller companies in the same market to consolidate them into a larger entity. This approach aims to increase the value of the combined entity through synergies and economies of scale, with the goal of selling the larger company or taking it public for a profit.

Match the Term with Its Definition