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The Top Three Leveraged Buyouts in History

Posted by Jim on Jan 17th, 2013 · 0 Comment

A leveraged buyout occurs when one company (often a financial services company) buys another company (often a true business) and uses the purchased company’s cash flow and assets to secure and repay the debt incurred by the purchase. The debt acts as a lever to increase returns, which gives rise to the term leveraged buyout, or LBO for short. In common language, LBOs usually involve a financial...
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Here are some simple guidelines that will help you build wealth:

1) Do the math. Get a budget and calculate your net worth

2) Get an emergency fund. Save at least 6 months worth of expenses

3) Limit costs. Spend no more than 30% of your income on housing

4) Max your retirement. Maximize contributions to your tax-deferred retirement accounts

5) Pay yourself first. Set aside money for yourself before you take care of your other bills

6) Set goals. Goal let you get ahead faster

7) Avoid high interest debt. Avoid credit cards, title loans and other usurious loans

8) Diversify. Diversity your assets.

The Top Three Leveraged Buyouts in History

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