What is the main source of financing in a leveraged buyout?

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The main source of financing in a leveraged buyout is debt. In a leveraged buyout, the acquiring company takes on a significant amount of debt to finance the purchase of the target company. This is because the acquiring company typically does not have enough cash on hand to make the acquisition outright, and so must rely on debt financing to make the purchase. Equity may also be used to finance the buyout, but it is typically a secondary source of financing after debt. Assets and cash may also be used, but they are not the primary sources of financing in a leveraged buyout.

What Is the Main Source of Financing in a Leveraged