When the acquiring entity in a leveraged buyout is the firm's existing management team, it is called a(n)

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When the existing management team of a firm acquires it through a leveraged buyout, it is called a management buyout. In this case, the management team borrows a large amount of money to purchase the controlling stake in the company, and uses the assets of the company as collateral for the debt. This allows them to gain ownership and control of the company without putting up a lot of their own money. A management buyout occurs when the existing management team of a company uses leverage to acquire the company's ownership from its current shareholders. This allows the management team to have greater control over the company's operations and decision-making processes.

When the Acquiring Entity in a Leveraged Buyout Is the Firm's