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Leveraged Buyout

Acquisitions, or buyouts, are a part of growth for many businesses. However, many companies pass up excellent opportunities for buyouts because of the high capital costs involved. This is where we can help.
partner story

Salary.com

Acquisition costs are no match for leveraged buyout financing. See what happened when Kent Plunkett, CEO of Salary.com, wanted to buy back the company he had founded.
Acquisitions, mergers, and buyouts are just a part of life for many businesses looking to grow and expand. Sometimes, a company is unwilling – or unable – to sacrifice enough of their cashflow to complete a buyout, but there’s a good opportunity that they don’t want to miss. High performing businesses (the ones you’d want to acquire) are usually quite expensive, but leveraged buyout financing can make them a lot more affordable.

Consisting of a combination of debt and equity, a leveraged buyout is guaranteed by a combination of assets from both the acquiring and acquired companies – hence the term “leveraged.” With leveraged buyout financing, you don’t have to worry about cutting into operational costs, and it enables the acquiring company to take their acquisition private if they so choose.

Leveraged buyout financing can help your business achieve growth objectives without sacrificing other goals in the process.
our people

Here to help you own it.

“We  don’t turn our backs when things don’t go as planned. It’s just not our style. We will help you through. To us, a temporary setback is never worth compromising a long-term relationship.”

billy greer
managing director
Typical size
  • US$10 million - US$300 million
Typical uses
  • Privatisation
  • Shareholder buyout
  • Ownership transfer
  • Mergers and acquisitions
Structural characteristics
  • Capital used for a leveraged buyout can vary greatly depending on the situation
  • Some sample structural characteristics include:
  • Fixed rate
  • Floating rate
  • Secured
  • Unsecured
Issuer benefits
  • Wide variety of capital available, both in amount and structure
  • Able to provide capital in multiple currencies for international buyouts
  • Responsible provider that performs due diligence on acquired business
“Not everything that we planned on happening went according to plan since we bought the business back. However, Pricoa has been incredibly flexible, fair, and judicious in how they’ve worked with us as a partner to restore the kind of growth that we had historically at Salary.com. It's been a very successful partnership in that way.”
Kent Plunkett, Chief Executive Officer, Salary.com
Pricoa Private Capital (‘PPC’) is a trading name of PGIM, Inc. (‘PGIM’), the principal asset management business of Prudential Financial, Inc. ('PFI'), and it is also a trading name of PGIM Private Capital Limited and PGIM Private Capital (Ireland) Limited. In the United Kingdom, information is issued by PGIM Private Capital Limited with registered office: Grand Buildings, 1-3 Strand, Trafalgar Square, London, WC2N 5HR. PGIM Private Capital Limited is authorised and regulated by the Financial Conduct Authority (“FCA”) of the United Kingdom (Firm Reference Number 172071) and registered in England No. 1331817. In the European Economic Area (“EEA”), information is issued by PGIM Private Capital (Ireland) Limited with registered office: Pramerica Drive, Letterkenny Business and Technology Park, Letterkenny, Co Donegal, F92 W8CY, Ireland. PGIM Private Capital (Ireland) Limited is authorised and regulated by the Central Bank of Ireland and registered in Ireland under company number 635793 operating on the basis of a European passport. In certain EEA countries, information is, where permitted, presented by PGIM Private Capital Limited in reliance of provisions, exemptions or licenses available to PGIM Private Capital Limited under temporary permission arrangements following the exit of the United Kingdom from the European Union. These materials are issued by PGIM Private Capital Limited and/or PGIM Private Capital (Ireland) Limited to persons who are professional clients as defined  under the rules of the FCA and/or to persons who are professional clients as defined in the relevant local implementation of Directive 2014/65/EU (MiFID II).