How does a leveraged buyout affect a public company?

What will be an ideal response?


In a leveraged buyout (LBO), a single investor or group of investors buys, with the help of borrowed money (leveraged against the company's assets), the outstanding shares of a publicly traded company in order to take it private. In short, an LBO changes the ownership structure of a company from public to private. The expectation is often that the private owners will restructure the company and eventually take it public again through an initial public offering (IPO).

Business

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Cash dividends paid on capital stock would be reported in the statement of cash flows in

a. the cash flows from financing activities section b. the cash flows from investing activities section c. a separate schedule d. the cash flows from operating activities section

Business

Answer the following statements true (T) or false (F)

1. It is possible to use your stress and anxiety to build your confidence as a speaker. 2. Thought stopping is an example of cognitive restructuring. 3. We often feel more anxious presenting a speech when it does not interest us. 4. Practicing is not considered a component of your speech preparation.

Business

Which part of the interview consumes the greatest amount of time?

A) The warm up stage B) The opening stage C) The question and answer stage D) The closing stage E) The follow-up stage

Business

Christian Company's sales revenue for 20xx was $144,000 . Christian's product sells for $5.50 and has a 30 percent contribution margin. Christian has fixed costs of $33,000. What is Christian Company's breakeven point in sales dollars?

a. $205,714 b. $110,000 c. $144,000 d. $173,000

Business