In a leveraged buyout,the acquired company,in effect,pays for its own acquisition.

Name: In a leveraged buyout,the acquired company,in effect,pays for its own acquisition.
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In a leveraged buyout, the acquiring company uses a large amount of debt to finance the acquisition of the target company. The debt is typically paid off using the cash flows and assets of the acquired company, meaning that the acquired company is essentially paying for its own acquisition.

In a Leveraged Buyout,the Acquired Company,in Effect,pays for Its Own