A leveraged buyout needs to be carried out through
A) a hostile takeover.
B) a friendly merger.
C) a vertical merger.
D) a conglomerate merger.

Question

Quizplus · Accepted Answer

A leveraged buyout occurs when a company is acquired primarily with borrowed money, and the assets of the acquired company are used as collateral for the debt. This type of transaction can often be hostile, but it can also be done through a friendly merger where the target company agrees to be acquired. However, a vertical or conglomerate merger may not necessarily involve a leveraged buyout, and so options C) and D) can be ruled out.

A Leveraged Buyout Needs to Be Carried Out Through