The LBO Guide

The LBO Guide refers to an overview of Leveraged Buyouts (LBOs), a financial strategy where investors acquire a company primarily using borrowed funds. In an LBO, a small amount of the investor’s own money is combined with significant debt to finance the purchase. The assets of the acquired company often serve as collateral for the loan. The goal is to improve the company’s performance and increase its value over time, allowing investors to sell it for a profit. LBOs are common in private equity and require careful financial analysis and management.