1980s leveraged buyout boom

The 1980s leveraged buyout boom involved investors using borrowed money to purchase companies, often with the aim of making them more profitable before selling them later. Firmly believing in turning around underperforming businesses, private equity firms acquired large companies, taking them private to restructure operations. This led to significant profit potential but also involved substantial risk. The phenomenon changed corporate finance, as it emphasized quick returns and aggressive management strategies, influencing the landscape of American business and leading to both economic growth and controversies over job losses and corporate debt.