The Technical Interview Guide to Investment Banking, + Website

Part FiveLeveraged Buyouts

A leveraged buyout is an acquisition of an entity using a significant amount of debt to meet the acquisition cost. Leveraged buyouts are typically conducted by private equity funds designed to acquire businesses with the hope that they can exit the business at a later date, making a return on the investment. An understanding of this topic is necessary for those interested in the private equity industry. The technical leveraged buyout modeling is often seen as complex, and so knowledge of leveraged buyouts would set one apart competitively even in an investment banking interview process. In addition, there are some investment banking groups that do leveraged buyout modeling. If you find an interest or need to review leveraged buyouts in more complete detail, read my book, Leveraged Buyouts.