A potential buyer for Teresa's business has mentioned a leveraged buyout, which involves a high level of _____ financing.

Question

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A leveraged buyout (LBO) involves using a significant amount of debt financing to acquire a business. The buyer will typically use the assets and cash flow of the target company to secure loans, with the goal of using the company's future earnings to pay off the debt. As such, LBOs are characterized by high levels of debt financing.

A Potential Buyer for Teresa's Business Has Mentioned a Leveraged