👉 The Leveraged Buyout (LBO) project, often associated with the concept popularized by the film "The Social Network," involves acquiring a company using a significant amount of borrowed money, with the assets of the company serving as collateral. The acquiring entity, typically a private equity firm, injects capital into the target company and uses the proceeds from the sale of the company's assets or the company’s own cash flow to finance the purchase. This leveraged approach allows the buyer to control a large company with minimal upfront equity investment, aiming to improve the company's operations and financial performance over time before eventually selling it at a profit or taking it public. The high debt levels increase financial risk but can also amplify returns if the investment is successful.
