Leveraged: Buyout

: The assets of the acquired company (and sometimes the acquirer) serve as collateral for the loans.

: Secured by assets and paid first; carries the lowest interest rates. leveraged buyout

: Ideal candidates are mature, stable businesses in non-cyclical industries with strong, predictable cash flows and low capital expenditure (CAPEX) requirements. Common Financing Instruments : The assets of the acquired company (and

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

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