One big advantage of going private through a leverage buyout is the tax shields from the borrowing.

Question

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When a company is taken private through a leverage buyout, the acquiring group typically takes on a significant amount of debt to finance the purchase. The interest on this debt can be tax-deductible, providing the company with a significant tax shield. This can lead to lower tax liabilities and increased cash flows for the company, making it a significant advantage of going private through a leverage buyout.

One Big Advantage of Going Private Through a Leverage Buyout