In a leveraged buyout in which a change in control has not occurred, cash given to the target company's shareholders that exceeds the book value of the target company's equity results in a charge to equity.

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In a leveraged buyout, the target company's shareholders receive cash that exceeds the book value of the target company's equity. This results in a charge to equity because the excess cash is considered a payment for the target company's goodwill.

In a Leveraged Buyout in Which a Change in Control