• 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.