Search results
Results from the WOW.Com Content Network
A secondary buyout is a form of leveraged buyout where both the buyer and the seller are private-equity firms or financial sponsors (i.e., a leveraged buyout of a company that was acquired through a leveraged buyout). A secondary buyout will often provide a clean break for the selling private-equity firms and its limited partner investors.
A leveraged buyout (LBO) occurs when one company acquires another using debt as the means to complete the acquisition. LBOs allow companies to purchase other companies without tying up significant ...
Diagram of the basic structure of a generic leveraged buyout transaction. Leveraged buyout (LBO) refers to a strategy of making equity investments as part of a transaction in which a company, business unit, or business asset is acquired from the current shareholders typically with the use of financial leverage. [13]
A management buyout (MBO) is a form of acquisition in which a company's existing managers acquire a large part, or all, of the company, whether from a parent company or individual.
Financial characteristics and outcomes [ edit ] In a 2009 study of 198 leveraged buyouts in the US from 1984 to 2007, 29% were syndicated and "target shareholders receive[d] approximately 10% less of pre-bid firm equity value, or roughly 40% lower premiums, in club deals compared to sole-sponsored leveraged buyouts", the so-called club discount ...
Elon Musk’s purchase of Twitter could go down as the worst leveraged buyout (LBO) deal for banks since the 2008 global financial crisis in the latest worrying sign the deal is proving costly to ...
Various investor classes look to the financial sponsor to generate value in a company as much as the management or operations of the company. In particular, debt providers are willing to extend credit in the form of bank loans, high-yield debt and mezzanine capital based in part on the reputation of and relationship with the financial sponsor.
This week's news that JetBlue will launch a hostile takeover bid for Spirit Airlines brought the term "hostile takeover" back into the headlines -- and prompted many people to brush up on what it...