MBOs

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January 27, 2018 at 6:21 pm #433460
quytuan
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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?
January 28, 2018 at 10:10 am #433574
John Moffat
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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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