What is a Leveraged Buyout (LBO)?

What is a Leveraged Buyout (LBO)?

In part II of leveraged buyouts, Tim gives a brief history of LBOs before considering the targets and exits from these.
Overview

We look at how LBOs are funded, LBO targets and exit strategies. Private equity firms are funded by institutional investors, also known as Limited Partners. An LBO target can be any public or private company. Common exits include a sale of the company, an IPO or a dividend recapitalisation.

Key learning objectives:

  • Who funds private equity transactions?

  • What are the target companies of an LBO?

  • How does a private equity firm exit a company?

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Summary
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Expert
Tim Hall

Tim Hall

Tim has nearly 30 years of experience in the international capital markets at major global institutions and has worked both on the buy-side and the sell-side. He has worked with numerous companies, banks and governments in developed and emerging markets on investment grade and high yield bond issues, from straight-forward to very complex acquisition/leveraged financings. Tim has also been on the board of a UK “challenger bank.” Tim has an MBA from the Wharton School, and is a CFA.

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