Leveraged buy-outs (LBOs) are an example of a financial merger undertaken to create a high-debt private corporation with improved cash flow and value.

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Leveraged buy-outs (LBOs) involve using a high amount of debt to finance the acquisition of a company, with the goal of improving its cash flow and overall value. The newly acquired private corporation is typically operated with a focus on reducing costs and increasing profitability, with the hope of generating enough cash flow to repay the debt used to acquire it.

Leveraged Buy-Outs (LBOs) Are an Example of a Financial Merger