|
An investment that requires a large amount of capital assets for a given amount of sales.
Examples include the automobile industry, the oil refining business, both of which require huge amounts of capital investment to start up, which usually means that very few companies can afford to enter the industry.
|
|
|
Other resources
-
The History of the Leveraged Buy-Out
The leveraged buy-out (LBO) transaction gained notoriety in the late 1980’s with private equity firms such as Kohlberg Kravis and Roberts (KKR) and Fortsmann Little undertaking a number of large and high profile transactions.
The market effectively reached its zenith in 1998 with KKR’s US$25 billion buyout of RJR Nabisco, which still remains the largest LBO in history.
Read more: The History of the Leveraged Buy-Out
-
How to Deliver a Winning Business Plan Presentation
While a strong business idea and a well written plan may generate the interest of equity providers, investors ultimately commit capital to people and not just plans. The ability to produce and present a compelling presentation of the company’s potential and management’s capability is therefore one of the most critical aspects of actually securing funding.
Read more: Business Plan Presentation
|
|