Inquiring minds should want to know.
What is a Leveraged Buyout?
wisegeek.com
A leveraged buyout is a tactic through which control of a corporation is acquired by buying up a majority of their stock using borrowed money. A leveraged buyout may also be referred to as a hostile takeover, a highly-leveraged transaction, or a bootstrap transaction.
Once control is acquired, the company is often made private, so that the new owners have more leeway to do what they want with it. This may involve splitting up the corporation and selling the pieces of it for a high profit, or liquidating its assets and dissolving the corporation itself.
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A Leveraged Buyout is a Hostile Take-over.
If Corporations were people, LBO's would be like Armed-Robbery.
What is a Leveraged Buyout?
Leveraged buyout -- wikipedia
A leveraged buyout (or LBO), or highly leveraged transaction (HLT), or "bootstrap" transaction) occurs when an investor, typically a financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage (borrowing). The assets of the acquired company are used as collateral for the borrowed capital, sometimes with assets of the acquiring company.
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Companies of all sizes and industries have been the target of leveraged buyout transactions, although because of the importance of debt and the ability of the acquired firm to make regular loan payments after the completion of a leveraged buyout, some features of potential target firms make for more attractive leverage buyout candidates, including:
* Low existing debt loads;
* A multi-year history of stable and recurring cash flows;
* Hard assets (property, plant and equipment, inventory, receivables) that may be used as collateral for lower cost secured debt;
* The potential for new management to make operational or other improvements to the firm to boost cash flows, such as workforce reductions or eliminations;
* Market conditions and perceptions that depress the valuation or stock price.
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A Leveraged Buyout is a free-market
Garage Sale.
If weak Corporations can be sold off for parts, and careers toss away like so much overhead -- then in the Corp-Eat-Corp world, they must be sold of for parts. All those onerous paychecks, simply must be tossed. Canceled; erased.
Time is money afterall ... daylight's burning ...
Billionaire Opportunity is there just for the taking.
What is a Leveraged Buyout?
Leveraged Buyout (LBO)
investinganswers.com
[...]
The risks associated with a LBO deal [Leveraged Buy Out] are why share prices often fall when a company announces news of a LBO. However, such a price fall can be a buying opportunity if investors think the company will be able to pay down the debt, which increases the value of the shares.
The world's most famous LBO is the approximately $25 billion takeover of RJR Nabisco by private equity firm Kohlberg Kravis Roberts in 1989. The deal was so famous (and so brazen) that it was immortalized by the book and movie Barbarians at the Gate. In those days, many companies used LBOs to purchase undervalued companies only to turn around and sell off the assets (these acquirers were called corporate raiders). [...]
A Leveraged Buyout is a
high-stakes poker game, in a modern 'take no prisoners' age.
Your productivity, your job, your pension -- they're all game. All Chips on somebody else's high-roller table.
What is a Leveraged Buyout?
Largest private equity firms -- wikipedia
The following is a ranking of the largest private equity firms published in 2011. The ranking was compiled by Private Equity International, which reveals that the world's 50 largest private equity direct investment programs have raised in excess of US$325 billion since 2006
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Rank Name of the firm Headquarters Capital Raised as of Apr 2011
(billions of USD)
1 TPG Capital US Fort Worth $ 50.55
2 Goldman Sachs Capital Partners US New York $ 47.22
3 The Carlyle Group US Washington DC $ 40.54
4 Kohlberg Kravis Roberts US New York $ 40.21
5 The Blackstone Group US New York $ 36.42
6 Apollo Management US New York $ 33.81
7 Bain Capital US Boston $ 29.4
8 CVC Capital Partners UK London $ 25.07
9 First Reserve Corporation US Greenwich, CT $ 19.06
10 Hellman & Friedman US San Francisco $ 17.20
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What is a Leveraged Buyout?
It's only the skill-set that Mitt Romney has on his Resume.
It's the wealth of experience he promises bring to America's free market economy.
Leveraged Buyout is the Resource Re-Allocation trick that can turn all that rusty corporate-capital into gold
-- Stacks of it, in someone's hidden offshore account somewhere, never to be seen again for a very, very long time.
Time is money ... thanks for playing along at home ... That's all folks.
Come on, you didn't think Billionaires were doing this, to Help the Country Grow, did you?
If that were the case then, Why so many offshore accounts?
Inquiring minds should want to know.