Leveraged Buyout ✰ < BEST >

: The future cash flows of the acquired business are used to pay down the interest and principal of the debt over time.

: The cash investment from the PE firm, usually 10%–40% of the deal. The LBO Lifecycle leveraged buyout

: Secured by assets and paid first; carries the lowest interest rates. : The future cash flows of the acquired

LBOs are defined by their unique capital structure and the use of the target company's own assets to facilitate the purchase. leveraged buyout