One big advantage of going private through a leveraged buyout is the tax shields from the borrowing.

Question

Quizplus · Accepted Answer

Leveraged buyouts involve borrowing money to acquire a company, and the interest payments on that debt can be tax-deductible. This creates tax shields, which can lower the effective tax rate of the acquired company and increase cash flow. Therefore, going private through a leveraged buyout can have tax advantages.

One Big Advantage of Going Private Through a Leveraged Buyout