When companies are purchased through a leveraged buyout

Name: When companies are purchased through a leveraged buyout
Brand: Quizplus
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Leveraged buyouts (LBOs) involve using borrowed funds, typically from banks and other financial institutions, to finance the acquisition of a company. The debt burden is usually very large, with the acquired company being used as collateral for the loans. The income statement and stock issuance may also be factors but are not typically the primary collateral base for LBOs.

When Companies Are Purchased Through a Leveraged Buyout