Leveraged buy out (LBO) financing is typically for:
- Management buyouts
- Acquisitions
- Divestitures
- Valuations
- Refinancings
Strategic purchase of other product lines, divisions, or companies.
Be prepared to:
- Raise and negotiate terms of senior, subordinated, and equity financing
- Organize business plans
- Hire needed management personnel where applicable
- Structure new employee benefit plans
- Negotiate long-term supply and use agreements
Take note:
Equity-based methods of financing are outweighing debt-based. Remember, equity does not entitle equity providers to any claim to a company’s assets or require a company to make scheduled payments.
