According to dictionary.com:
lev·er·age   [lev-er-ij, lee-ver-] Show IPA noun, verb,-aged,-ag·ing.-noun1.the action of a lever.2.the mechanical advantage or power gained by using a lever.
3.power or ability to act or to influence people, events, decisions, etc.; sway: Being the only industry in town gave the company considerable leverage in its union negotiations.
4.the use of a small initial investment, credit, or borrowed funds to gain a very high return in relation to one's investment, to control a much larger investment, or to reduce one's own liability for any loss.
-verb (used with object)5.to exert power or influence on.
6.to provide with leverage.
7.to invest or arrange (invested funds) using leverage.
over leveraged. ------------------------ or perhaps madness!!
Bain capital is an equity start up and leveraged buy-out fund company that helps provide capital to both public and private companies to help them grow.
A leveraged IRR is a mathematical formula used to determine the rate of your return that you are currently getting from an investment. This formula is a very complicated procedure.
Yes
Free cash flow or FCF is important to leveraged buyouts because it helps an analyst or banker determine whether there are sufficent excess funds to pay back the loan associated with the leveraged buyout. Free cash flow is a measure of financial performance calculated as operating cash flow minus capital expenditures. FCF is important to leveraged buyouts because it helps an analyst or banker determine whether there are sufficient excess funds to pay back the loan associated with the leveraged buyout.
you will find this in a few days
leveraged firm is good because it has low risk than unleveraged firm while earning same amount of profit.
The strategy of investors who are attempting a leveraged buyout is:
SLF = Syndicated and Leveraged Finance
contains debt financing
Purchasing a stock itself is on the premise that the firm will do well and hence such a bullish perception can be likened to purchase of call option. However such perception is applicable for both the leveraged or non leveraged firms.
Leveraged Lease Financial Lease Operating Lease