Tag: LBO
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Reverse Breakup Fees: More Trendy than the 3G iPhone
It looks as though private equity buyers better get used to seeing reverse breakup fees and other seller-friendly provisions in their merger agreements. TheDeal.com details how reverse breakup fees are becoming industry-standard provisions in private equity LBO deals in a new article called “Desperately Seeking Certainty:” Starting with the 2005 sale of Neiman Marcus Group…
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Reverse Breakup Fees: Making Acquisitions Less Risky for the Selling Company
How target companies are using reverse breakup fees to re-allocate deal risk
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What is a Leveraged Buyout?
A leveraged buyout (“LBO”) is a strategy where someone acquires an existing company using a significant amount of borrowed funds. Typically, the assets of the company being purchased are used as collateral for the borrowed funds. This allows someone to acquire a company without having to outlay a lot of personal or business capital. Then,…