Establishments are concentrated on various techniques in order to grow in their own sectors or in others. In particular companies having large amount of and reliable resources plan to grow by purchasing other companies or by incorporate them to their structures. In general, such purchases are carried out through borrowing. This kind of purchase is called leveraged buyout. In leverages buyouts it is not necessary for the capital to be borrowed. Buyouts through this method was firstly carried out in America in 1980s.
Such kind of financing are generally applied for family businesses. In addition, exit strategy in the leveraged buyout method is clearly identified from the initial period of relevant process. This strategy is composed of providing the company with enough size and profitability within 4 or 5 years, then offering it to public or sale it to a larger company in the same industry.
There are risks in the leverage buyout system like any other financing method. Such risks can be minimized with the support of our professional staff.