Leveraged Buyouts

Leveraged Buyouts


S
Asked by 2 years ago
0 points

Leveraged Buyouts

Leveraged Buyouts

A leveraged buyout or LBO is a restructuring strategy whereby a party, typically a private equity firm, buys all of a firm's assets in order to take the firm private. ( Hitt, Ireland & Hoskisson, p. 207)

A leveraged buyout also prevents the company's stock from being publicly traded. In 2006, HCA quickly agreed to a 21 billion leveraged buyout from several private equity firms, including Bain Capital, Kohlberg Kravis Roberts & Co., and Merrill Lynch. The deal also included the assumption of 11.7 billion in debt. All stockholders received 51 in cash and a premium of 6.5 percent of the previous day's closing price. However, this price was below the price at which the stock traded in late 2005 and early 2006. ("HCA Agrees," 2006) HCA is only one...

Leveraged Buyouts
solarc

1 Answer

S
Answered by 2 years ago
0 points

Oh Snap! This Answer is Locked

Leveraged Buyouts

Thumbnail of first page

Excerpt from file: LeveragedBuyouts LeveragedBuyouts AleveragedbuyoutorLBOisarestructuringstrategywherebyaparty, typicallyaprivateequityfirm,buysallofafirmsassetsinordertotake thefirmprivate.(Hitt,Ireland&Hoskisson,p.207) A leveraged buyout also prevents the companys stock from being

Filename: leveraged-buyouts-34.docx

Filesize: < 2 MB

Downloads: 0

Print Length: 3 Pages/Slides

Words: 205

Your Answer

Surround your text in *italics* or **bold**, to write a math equation use, for example, $x^2+2x+1=0$ or $$\beta^2-1=0$$

Use LaTeX to type formulas and markdown to format text. See example.

Sign up or Log in

  • Answer the question above my logging into the following networks
Sign in
Sign in
Sign in

Post as a guest

  • Your email will not be shared or posted anywhere on our site
  •  

Stats
Views: 3
Asked: 2 years ago

Related