A Build-Up Leveraged Buyout Involves

question 26

Multiple Choice

A build-up leveraged buyout involves

• A) developing the business to make it an attractive takeover target.
• B) acquiring businesses that occupy a higher level in the market channel.
• C) a longer time horizon than a bust-up leveraged buyout.
• D) constructing a larger enterprise to be taken public via an IPO.

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Definitions:

Implied Share Price

The calculated value of a company's share based on future earnings, cash flows, or market expectations.

Implied Share Price

The theoretical price of a company's stock derived from certain financial models, reflecting the market's expectations of its future cash flows or earnings.

Earnings Multiple

A valuation ratio that compares a company's current share price to its per-share earnings, commonly used to gauge stock prices.

Abnormal Earnings

Earnings that are above or below the normal or expected level due to unusual circumstances or events.