Question

if a group of private investors successfully borrowed a large sum of money and purchased the firm from its current owners, we would call this event a

Answer 1

The event is known as Leveraged buyout.

Leveraged buyout is used to describe a transaction where an organization is acquired by an individual or group of individuals, through debt gotten elsewhere.

• In other word. when a company's acquires another company using a significant amount of borrowed money to meet the cost of acquisition, it is known as Leveraged buyout.

In conclusion, when this group of private investors in the question successfully acquired the firm from its current owners with borrowed money, then the event is known as Leveraged buyout.

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