Leveraged buyouts occur when the acquisition of another company is almost entirely leveraged.
After the financial crisis of 2008, the popularity of leveraged buyouts declined, but it is gaining momentum again.
Leveraged buyouts (LBOs) typically have a ratio of 90% debt to 10% equity.
LBOs have gained a reputation for being ruthless and predatory business tactics, especially since the assets of a target company can be used as leverage against it.