In a leveraged buyout a business firm is acquired by one or a small group of investors with 80 to 90 percent of the purchase price covered by borrowing.

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In a leveraged buyout (LBO), a company is acquired primarily using borrowed funds, often with the assets of the company being acquired serving as collateral for the loans. The amount of borrowing can indeed range from 80 to 90 percent of the purchase price, making the statement true.

In a Leveraged Buyout a Business Firm Is Acquired by One