Small Business InvestingPrivate Equity |
What is a “leveraged buyout”? |
A leveraged buyout is one form of private equity, whereby investors may come together and use a percentage of the target company’s current cash flow in order to obtain loans to acquire the target company at an agreed-upon valuation. By working with the current management of the company, the leveraged buyout private equity investor may turn around the target company and assist the company to realize its full profitable potential.