Published On: 05/02/2022Categories: Financial Management

The LBO , an acronym for the English term Leveraged Buy Out , is a concept that surrounds us more and more frequently, mainly in the media, often appearing in economic news. But do we really know what this LBO thing is? .

We can define it as a financial method that aims to acquire a company using, as a financing instrument, the value of the assets of the same company that we want to buy. In a very simplistic way, an example would be to buy a company for 50,000 euros and pay for it using the 50,000 euros that the company we acquired has in cash…

The LBO has another, non-academic meaning: Large Bankruptcy Opportunity , which predicts the end that can await the purchased company: bankruptcy .

We see it and we approach this topic of great interest for the Financial Management , through the reading of this article:

https://www.eleconomista.es/firmas/noticias/7376125/02/16/LBO-el-metodo-que-lleva-a-la-bancarrota.html

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