In the 1980s conglomerates began to shed unrelated businesses and leveraged buyouts (LBOs) were one tool used to accomplish this. An LBO is when a company is bought primarily using debt and often it is the managers of the company who buy it with the help of this financial tool.

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In the 1980s, LBOs became popular as a method for managers or investors to acquire companies using borrowed funds, often leading to the divestiture of unrelated businesses within conglomerates.

In the 1980s Conglomerates Began to Shed Unrelated Businesses and Leveraged