A leveraged buyout (LBO) is when a party obtains a controlling interest in a company but a substantial proportion of the purchase cost is financed through borrowing. Assets of the purchased company are commonly used as security for the capital borrowed and in some cases the assets of the acquiring company are also used. The size of the your company does not matter in an LBO but low debt levels, stable financial history, hard assets, perception of future share value and new management potential all play major parts in a the attractiveness of a target firm. Our typical term for LBO’s is 3 – 7 years.