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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Corporate restructuring
Sir,
What is leverage buyout???
Can you explain me in simple term
A buyout is simple buying another company (usually, for the exam, the managers of the company taking over the company).
Leverage is another word for gearing.
So a leveraged buyout is where the company is being bought, but a lot of the money to pay for it is coming from long-term borrowing.
Sir,
Can you explain me following things
1) what is divestment ?
2) difference between sell-off and divestment ?
3) main reason for demerger ?
4) difference between spin-off and curve-out ?
Surely all these are explained in your Study Text (or you can find them using Google)?