An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing is called a (n) :

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Business

Dario Booker

3 April, 11:54

An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing is called a (n) :

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Annabelle · Answer 1

An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing is called a Leveraged Buyout.

Explanation:

It is one the important forms of the acquisitions where company is acquired by its own employees, management or a group of investors. In leveraged buyout, it is done primarily through by borrowing the funds (outside capital)

Company own employees, management or that group who purchase the firm become the owners of that firm. They are the owner of all the company's assets and the whole company. They can then run and manage the firm without having any intervene from the previous management at all in any way.