Finance · Leveraged Buyout
What is the primary motive behind a leveraged buyout (LBO)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Reducing overall financial leverage of the parent firm
- 2Selling public equity to raise additional operational funds
- 3Avoiding taxation on future capital gains entirely
- 4Acquiring control of a company using minimal equity and a high proportion of debt✓
Correct answer
Acquiring control of a company using minimal equity and a high proportion of debt
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