Leveraged Buyout (LBO) Analysis Overview

Description
A leveraged buyout is the acquisition of a business, that is either publicly or privately held, from an independent company or a subsidiary (as part of a larger company), using a large amount of borrowed funds to pay for the company. The transaction is carried out by a private equity firm or a group of private equity firms, which will then take ownership of the company once the acquisition is completed.

This PDF file contains an overview of LBO, criteria for selecting LBO candidates, capital structure, operating assumptions, potential exit and return analysis, sources and uses and a summary of LBO considerations. Each section contains detailed descriptions and examples that will help you learn all you need to know about leveraged buyouts!

Originally shared on Street of Walls' Website.