The type of acquisition in which the acquiring entity is financing most of the buyout with debt is called a

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In a leveraged buyout (LBO), the acquiring entity (often a private equity firm) uses a significant amount of debt to finance the purchase of the target company. Due to the high levels of debt involved, the target company's assets are often used as collateral for the loans taken out to finance the acquisition. The goal is to use the cash flow from the target company's operations to repay the debt over time. LBOs are often used to take public companies private, allowing the acquirer to make strategic changes without the scrutiny of public investors. A leveraged buyout (LBO) is a type of acquisition in which the acquiring entity finances most of the buyout with debt. This debt is typically secured by the assets of the target company, and the goal is to use the cash flows generated by the target company to pay off the debt over time. LBOs are often used by private equity firms to acquire companies that have stable cash flows and strong market positions.

The Type of Acquisition in Which the Acquiring Entity Is