Any purchase of a controlling quantity of shares of a firm by an individual,a group of investors,or another organization is known as a leveraged buyout (LBO).

Question

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A leveraged buyout (LBO) specifically refers to the acquisition of a company using a significant amount of borrowed money (bonds or loans) to meet the cost of acquisition. The assets of the company being acquired and those of the acquiring company are often used as collateral for the loans. The definition provided does not accurately describe an LBO, as it does not mention the crucial aspect of leveraging significant amounts of borrowed money to finance the acquisition.

Any Purchase of a Controlling Quantity of Shares of a Firm