Skip to Main Content
Private Equity and Venture Capital in Europe
book

Private Equity and Venture Capital in Europe

by Stefano Caselli
November 2009
Beginner content levelBeginner
368 pages
11h 24m
English
Elsevier Science
Content preview from Private Equity and Venture Capital in Europe

16.1. General Overview of Buyouts

A buyout is a structured financial operation that, through merger, division, or acquisition of control participation, allows the transfer of the property from the old shareholders to a new entrepreneur with economic and technical support of a financial intermediary (usually a private equity fund). In a leveraged buyout (LBO) a major part of the capital is supplied by debt securities subscribed by a pool of banks and financial intermediaries. It is possible to define leveraged acquisitions as a particular type of M&A activity that leaves the acquired firm with a debt ratio higher than before the acquisition.

LBOs have a special structure, which consists of a holding company that founds a new company responsible ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

International Investments in Private Equity

International Investments in Private Equity

Peter Cornelius
International Private Equity

International Private Equity

Eli Talmor, Florin Vasvari
Private Equity Firms

Private Equity Firms

Kirsten Burkhardt

Publisher Resources

ISBN: 9780123750266