investing a relatively small portion of their own equity. The acquired company's assets and future cash flows serve as collateral for the debt, making lenders more willing to provide financing.

While different firms pursue different strategies, there are some characteristics that hold true across many types of leveraged buyouts:

* High debt-to-equity ratio: LBOs rely on a significant proportion of debt, typically ranging between 50% and 90% of the total purchase price. The remaining portion is financed through equity capital

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