Dixie and ten of her wealthy friends formed a group and borrowed the funds necessary to acquire all of the outstanding shares of Southern Fried Chicken. This transaction is known as a:

Question

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The transaction described in the question is a leveraged buyout (LBO), which is when a group of investors (usually including current management) borrows a large amount of money to purchase a company, using the assets of the company being acquired as collateral for the loan. This allows the buyers to acquire the company without using their own funds and instead relying on the cash flows of the company to repay the debt. LBOs are typically used by private equity firms and can be a way to take a public company private.

Dixie and Ten of Her Wealthy Friends Formed a Group