Leveraged buyouts are the same as acquisitions.

Question

Quizplus · Accepted Answer

While leveraged buyouts (LBOs) may involve the acquisition of a company, they differ in that the purchase is mainly financed through borrowed funds and the target company's assets are often used as collateral for the loans. This results in the acquiring company taking on a significant amount of debt, with the expectation that the acquired company's cash flows will be able to pay off the debt over time.

Leveraged Buyouts Are the Same as Acquisitions