A leveraged buyout (LBO) is a method of acquiring a company where the deal is financed by a combination of equity and debt and the debt is secured against the assets and cash flows of the target company. It is a sub-set of syndicated loans and is evolving as a financial tool to structure deals and maximize profits. Since leverage is an essential component of LBOs and the same is repaid by cash flows and assets of the target company, companies with relatively lower levels of d