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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 strategy where a company is acquired using a significant amount of borrowed funds, with the target company’s assets often used as collateral. LBOs are commonly used by private equity firms to maximize returns while minimizing upfront capital. Understanding how an LBO works is crucial for founders, CFOs, and finance leaders involved in merger... https://thealgebragroup.com/lbo-model/

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