recentpopularlog in

Copy this bookmark:





to read

bookmark detail

With a Strategy Called Leveraged Buyouts, You Can Get a Company for 10% Down
July 1983 |Canadian Business | by Donald Hunter.

Increasingly, employees are executing leveraged buyouts of their companies. Such was the case when the managers of Doran's Northern Ontario Breweries Ltd. bought their company 6 years ago from Carling O'Keefe Ltd. to run it themselves. They raised C$1.5 million in share capital and borrowed CS3 million from banks. In a leveraged buyout. the buyers put up only a small part of the selling price; the rest is ñnanced with loans secured by company assets. Leveraged buyouts are also popular among professionals and entrepreneurs looking for investment opportunities that require a minimum of cash. Candidate companies favored by banks for leveraged buyouts have valuable assets. good management, steady earnings` and little or no debt. Before engaging in a leveraged buyout. as many costs as possible and seek outside help in structuring the deal. The benefits of leveraged buyouts are a chance for good returns and the satisfaction of running one's own business.
LBOs  employee-owned  employees  employee_ownership  leverage  buyouts 
january 2013 by jerryking
view in context