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If it were so unremarkable, why isn't there a term for this sort of transaction and an I industry built around it? I suggest the transaction be called a leverag
by pottertheotter 6y ago
If it were so unremarkable, why isn't there a term for this sort of transaction and an I industry built around it? I suggest the transaction be called a leveraged buyout (we can shorten it to LBO) and call the industry private equity.
- hedgehog 6y agoSeller financed sales are reasonably common in business and real estate.
- deleted 6y ago[deleted]
- inopinatus 6y agoI avoided saying this is an LBO because persnickety finance folks may observe that the debt structure expected under the traditional definition of the term is quite particular, viz. that the acquired/merged entity ends up liable for the debt (either directly or as security), but there's language in the article strongly insinuating that the debt in this case was issued separately by the author's partnership, whose structure isn't apparent, but is evidently distinct. But, otherwise, yes indeed, quite so, the category of acquisition funded by debt is very well understood, the varieties extensively studied and practiced. So much so as to be taught in M&A 101, and my expression that it is unremarkable arises from this utter lack of novelty.