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What Is an LBO and How Does It Work in Finance?

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An LBO, or Leveraged Buyout, is a financial approach in which a company is acquired primarily using borrowed capital, while the acquired company’s assets are often used as security for the debt. This strategy is widely adopted by private equity firms to enhance returns while keeping initial equity investment low. Understanding how an LBO works is essential for founders, CFOs, and fina... https://thealgebragroup.com/lbo-model/

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