Which of the following is a tender offer that utilizes borrowed funds and the acquired firm's assets as collateral?
A) Unfriendly take-over
B) Divestiture
C) Two-step buy-out
D) Leveraged buy-out

Question

Quizplus · Accepted Answer

A leveraged buy-out (LBO) is a type of tender offer that utilizes borrowed funds, often from banks or other financial institutions, to acquire a company. The assets of the acquired firm are then used as collateral for the debt. LBOs are often used by private equity firms to acquire controlling stakes in companies.

Which of the Following Is a Tender Offer That Utilizes