Editing Takeover (section)

=== Funding ===
Often a company acquiring another pays a specified amount for it. This money can be raised in a number of ways. Although the company may have sufficient funds available in its account, remitting payment entirely from the acquiring company's cash on hand is unusual. More often, it will be [[loan|borrowed]] from a [[bank]], or raised by an issue of [[bond (finance)|bonds]]. Acquisitions financed through debt are known as [[leveraged buyout]]s, and the debt will often be moved down onto the [[balance sheet]] of the acquired company. The acquired company then has to pay back the debt. This is a technique often used by private equity companies. The debt ratio of financing can go as high as 80% in some cases. In such a case, the acquiring company would only need to raise 20% of the purchase price.{{citation needed||date=May 2024}}