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Leveraged Buyouts

By: iMinds
Narrated by: Emily Sophie Knapp
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Editorial reviews

In 1919, Henry Ford took a huge loan in order to buy back all existing public shares of the Ford Motor Company. This is an early example of what would come to be called a "leveraged buyout", a process whereby company management partners with outside investors to buy its own company back from the public. This practice has become quite common and fits within the business environment called "Mergers and Acquisitions".

Capably narrated by Emily Sophie Knapp and written in a smooth, no-frills, plainspoken style, this eight-minute audiobook will give a financial novice a working understanding of this term and the process it describes.

Publisher's summary

Learn about Leveraged Buyouts with iMinds Money's insightful fast knowledge series. Leveraged buyouts originated in the early 1960’s. It is also known as a hostile takeover, a highly-leveraged transaction, or a bootstrap transaction. In effect, it is a tactic through which control of a corporation is acquired by buying up a majority of their stock using borrowed money. Typically, an investor or financial sponsor acquires a controlling interest in a company's equity. A significant percentage of the purchase price here is financed through borrowing, which is termed leverage. The assets of the acquired company are used as collateral for the borrowed capital and sometimes the acquiring company’s assets are used as well. Once control is acquired, the company is often made private, so that the new owners have more leeway to do what they want with it. This may involve splitting up the corporation and selling pieces of it for a high profit. In some cases, it may even liquidate its assets and dissolve the corporation itself.iMinds will hone your financial knowledge with its insightful series looking at topics related to Money, Investment and Finance.. whether an amateur or specialist in the field, iMinds targeted fast knowledge series will whet your mental appetite and broaden your mind.

iMinds will hone your financial knowledge with its insightful series looking at topics related to Money, Investment and Finance.. whether an amateur or specialist in the field, iMinds targeted fast knowledge series will whet your mental appetite and broaden your mind.iMinds unique fast-learning modules as seen in the Financial Times, Wired, Vogue, Robb Report, Sky News, LA Times, Mashable and many others.. the future of general knowledge acquisition.

©2010 iMinds Pty Ltd (P)2010 iMinds Pty Ltd

Critic reviews

"I'm learning all sorts of stuff about stuff I didn't even know I didn't know. And it sticks. In a nutshell: wonderful." (Jonathon Margolis, Financial Times)

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Short and Solid Financial Education

It was a short but excellent financial education.
I recommend spending time on this book.

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