A retail ownership change financed by low-grade loans from banks and investors is a(n)_____.

Question

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A leveraged buyout (LBO) is a retail ownership change that is financed by low-grade loans from banks and investors. In an LBO, a company acquires another company using a significant amount of debt to finance the purchase. This debt is often in the form of loans with low grades, meaning they are not considered high-quality investments. The goal is to use the assets of the acquired company as collateral to secure the loans and to pay them off once the company is making profits.

A Retail Ownership Change Financed by Low-Grade Loans from Banks