leveraged-buyout-proposal

Vocabulary Word

Definition

'Leveraged buyout proposal' refers to a plan or suggestion to acquire a company mainly through borrowed funds. The assets of the company being bought often serve as collateral for the loans.

Examples in Different Contexts

Within financial planning, a 'leveraged buyout proposal' includes a detailed plan for financing the purchase of a company with loans. A financial planner might discuss, 'The proposal outlines how the leveraged buyout will be structured, including the sources of debt financing and equity contributions.'

Practice Scenarios

Tech

Scenario:

Our investors are planning a significant move to maximize their control over the startup. We might need to revisit our ownership agreements.

Response:

That sounds like a leveraged buyout proposal in the making. We should assess the possible implications for the startup's future.

Business

Scenario:

We're looking at expanding our portfolio and are considering some acquisition options. Any thoughts?

Response:

Perhaps preparing a leveraged buyout proposal would be beneficial. It might provide the strategic guidance needed for the acquisition.