Leveraged Buyout (LBO)

Leveraged buyout (LBO) analysis is performed when one company considers buying out another using high levels of debt. It is similar to DCF, but rather than look for present value, the potential buyer is looking to earnings based on the initial investment. This is often done when the goal is to buy a company, fix it up, and then sell it at a profit.

Please log in to rate this.
0 people found this helpful.

Category: Terminology

← Leveraged Buyout (LBO)