leveraged buyouts or lbos have a mixed reputation in the world business and lbo is a way to buy a company with funds that are nearly all borrowed either through debt or bonds. in many cases, the assets of a company being bought are used as the collateral for the loans in addition to the assets of the company that's making the purchase. that allows companies to make larger positions without having to commit a lot of capital. since leveraged buyouts can be completed using the assets of the company that's being bought, many ? are considered hostile takeovers. the risk is particularly grate with these types of buyouts. for example, alvarez & sons wants to buy lee cosmetics but it doesn't have an enough cash on hand or assets to use as capital. in a leveraged buyout, they can use the assets of the target company to secure the necessary funding. once the acquisition is complete, if alvarez & sons and lee cosmetics can not meet their very large debt obligations with the combined cash flow from both companies, lee cosmetics will likely ? to eventually go bankrupt.
- leveraged buyout（lbo）・・・レバレッジドバイアウト
- hostile takeover・・・敵対的買収