O'Reilly logo

Leveraged Buyouts: A Practical Introductory Guide to LBOs by David Pilger

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 3: Players in a Leveraged Buyout

Investor

Every LBO starts with the investor. The investor is the individual or private equity group that sees an opportunity and sets the process in motion. They have access to capital for investment and the best way for them to make money is to put the money that they do have to work, in the form of investments. They look for a strong takeover target with small amounts of debt, strong cash flow, assets free for use as collateral, and plenty of room for cost cutting in the current operations. The investors spend lots of time analyzing the potential returns from prospective deals and eventually choose whether to move on a company or not.

“The investor is motivated to realize the greatest return possible ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required