The management team of a privately held firm found a lender who would lend them 90 percent of the purchase price of the firm if they pledged the firm's assets as well as their personal assets as collateral for the loan. This purchase would best be described by which of the following terms?

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This scenario describes a leveraged buyout, where the management team borrows a significant portion of the purchase price, using both the firm's assets and their personal assets as collateral. A merger typically involves the joining of two existing companies, while a joint venture is a partnership between two or more firms. A tender offer is a public offer to buy a large portion of a company's shares. Consolidation usually refers to the merging of two or more companies to form a new entity.

The Management Team of a Privately Held Firm Found a Lender