Banks and Leveraged Buyouts: Institutions Playing a Major Role in Deals
Newman, A. Joseph, Jr., American Banker
PHILADELPHIA -- Banking institutions are becoming increasingly important in leveraged buyout deals both as lenders and investors, speakers agreed at a recent one-day conference on leveraged buyouts at the University of Pennsylvania's Wharton School.
A leveraged buyout, or LBO, is the acquisition by a buyer of a company that is financed to a substantial degree with borrowed funds secured by the firm's assets or cash flow. The technique, which generally involves management of the company, is often used by corporations to spin off unwanted units or totake public companies private.
"A number of banks that have made a lot of money in this [leveraged buyout] business have begun to …
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Publication information: Article title: Banks and Leveraged Buyouts: Institutions Playing a Major Role in Deals. Contributors: Newman, A. Joseph, Jr. - Author. Magazine title: American Banker. Volume: 149. Publication date: February 16, 1984. Page number: 2+. © 2009 SourceMedia, Inc. COPYRIGHT 1984 Gale Group.
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