"A big word, for a simple concept."

A leveraged buyout is simply the process of borrowing money to pay for an investment or acquisition. The more you can afford to borrow (and repay), the higher your returns.

This is an improved empirical approach to dissecting the sources of value in a buyout.

Spreadsheet to illustrate how leverage enhances equity returns

An empirical approach to understanding value creation in an LBO

Use this spreadsheet tool to estimate and derive the lowest possible equity outlay in a leveraged buyout.