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MBOs

TTuan8y ago
Why in many management buy-out exercises, there is usually an assumption that the business cancel or pay all of the loan of the selling part?. Does it usually happen in reality?
John MoffatJohn MoffatTutor8y ago#1
Yes, it does happen in reality. It is the original company that took out the loan, and so if there is a buy-out then the buyers need to negotiate their own financing.
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