The Real LBO Risk

October 2006
Investment Dealers' Digest;10/2/2006, Vol. 72 Issue 37, p2
Trade Publication
The article focuses on the risk faced by several companies who planned to go private thru leveraged buyout (LBO). A leveraged buyout is a strategy which involves the acquisition of another company using a significant amount of borrowed money (bonds or loans) to meet the cost of acquisition. However, most LBO firms are prone in making some additional debt in order to obtain greater financial returns.


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