In an,________ managers and/or employees borrow money from a financial institution and pay the owner the total agreed-upon price at closing;then they use the cash generated from the company's operations to pay off the debt.

Question

Quizplus · Accepted Answer

The process described in the question is known as a Leveraged Buyout (LBO). In an LBO, the managers and/or employees of a company borrow money from a financial institution to purchase the company, and then use the cash generated from the company's operations to pay off the debt. This allows them to gain ownership and control of the company without needing to put up a significant amount of their own capital.

In An,________ Managers And/or Employees Borrow Money from a Financial