Question

What refers to the strategy of making equity investment as part of a transaction in which a company business unit or business assets is required from the current shareholders typically with the use of financial leverage?

Answer 1

Answer:Leveraged buyout

Explanation:

Leveraged buyout (LBO) is the controlling share in a company or organization that is purchased by management using debt and equity.It is kind of financial transaction between the company.

These types of buyout are not funded in certain proportion of debt that is well defined.It provides benefit to the organization who purchases business due to return on equity.

Learn more:-

Advantages of Leverage Buyout

brainly.in/question/1139805

Answer 2

Leverage buyout refers to the strategy of making equity investments.

Explanation:

• Leverage buyout is the acquisition of some other company with the help of borrowed money.
• It is a kind of financial transaction where the investment process is done with the aid of both equity and debt.
• The opinions of current shareholders are asked before a transaction is done.
• The investment and sharing of financial resources are necessary for this aspect.
• The share marketing process can be enhanced with leverage buyout.

To know more:

1) Advantages of Leverage Buyout

https://brainly.in/question/1139806.

2) Difference between management buyout and leveraged buyout

https://brainly.in/question/3886176