Management buyouts are generally all-equity financed by the new shareholders.

Name: Management buyouts are generally all-equity financed by the new shareholders.
Brand: Quizplus
Rating: 4.8 (58 reviews)

Question

Quizplus · Accepted Answer

Management buyouts can be financed through a combination of equity and debt, including bank loans, mezzanine financing or high-yield bonds. All-equity financing is rare, as it puts a significant strain on the new shareholders' balance sheets and may limit the amount of funds available for growth or working capital purposes.

Management Buyouts Are Generally All-Equity Financed by the New Shareholders