Intellect Neurosciences Inc. (fka ILNS)

[tencoin]

The leveraged buyout or LBO is a structured finance operation used for the acquisition of a company by the exploitation of the borrowing capacity of the company. Leveraged buyout transactions are characterized by a high flexibility in the operating modes with which are carried out , the participants and the set of sources of financing used .
The leveraged buyout usually involves the creation of a special purpose vehicle set up ad hoc and called NewCo ( CereSpir ) , in which the sponsors of the operation and the various lenders entering the venture capital and debt capital necessary for the acquisition .

Identifiable are two general schemes by which are made LBO :

1 . acquisition by merger : then proceed with a merger between the target company ( the merged company) and NewCo (merging ) ;
2 . assets salt : The company Newco does not buy the target company as a whole but only those assets.

This can have as investors :

• Management of the company ( management buyout )
• Management of other companies ( Management buyin )

and allows you to join the company not only through capital , but also through debt .
The debt contract is then generally repaid or cash flows generated by the acquired company or by selling branches (or non-strategic business unit ) . In the latter case there is also talk of break-up.
















.