LBO (leveraged Buyout)

Let me clear this term! In LBO, there is a ratio of 90% debt to 10% equity. Because of this high debt/equity ratio, its bonds are referred as JUNK BONDS. IF you need to know about the largest LBO which was the acquisition of HCA (Healthcare company). Kohlberg Kravis Roborts (KKR), Bain & Co and Merrill Lynch organized a group to make this deal and transaction. The three companies paid around $33 billion for the acquisition. HCA will be prepared for IPO in this year! Keep watching its move on IPO