A leveraged buyout refers to a(n):
A) firm restructuring itself by selling off unrelated units of the company's portfolio.
B) firm pursuing its core competencies by seeking to build a top management team that comes from a similar background.
C) restructuring action whereby a party buys all of the assets of a business, financed largely with debt, and takes the firm private.
D) action where the management of the firm and/or an external party buys all of the assets of a business financed largely with equity.

Question

Quizplus · Accepted Answer

A leveraged buyout (LBO) is a financial transaction in which a company is purchased using a significant amount of borrowed money, with the assets of the company being acquired often used as collateral for the loans. The goal is to take the company private.

A Leveraged Buyout Refers to A(n)