“leveraged buyout”
Taking out a loan to buy something. Also commonly called ‘credit’.
The owner sold the company to the employees but they took out a loan, probably with him, to buy it. Often, these employee buyouts are an ESOP, employee stock ownership plan. The owner didn’t really loan any money, the employees simply go into debt to own the company, but they immediately start collecting profits, if any.
The owner sold the company to the employees but they took out a loan, probably with him, to buy it. Often, these employee buyouts are an ESOP, employee stock ownership plan. The owner didn't really loan any money, the employees simply go into debt to own the company, but they immediately start collecting profits, if any.
My PhD brother and two of his PhD pals, worked for the feds back in the late 70s at the Triangle at Raleigh-Durham analyzing waste products but the project was shut down by the gummint.
They got an investor that put up the cash, he took 51% of the shares and started a very successful waste analyzing company, that 10 years later received an offer from 3M for $42 Million.
The investor that owned the 51% of the shares,{he originally put up less than $ 1.5 million} told the other three he was selling out and taking his new pile of cash of $21 million, and they could each take $7 Million or buy him out, if they wanted to keep the company.
The dumb ass trio of PhD egg heads, did not take my advice or the $7 million FOR EACH ONE, then borrowed $21 million for the money man buyout, and went teats up...greed and stupidity define three PhD's of Dirt and Waste.