SECONDARY BUYOUT

Secondary Buyout is a kind of leveraged buyout. Secondary Buyout is when a company ends its connection from another company by selling investment in another company from one financial sponsor to another. This kind of buyout is usually dubbed as ‘panic’ selling therefore they are often difficult to consummate. The difference between secondary buyout and secondary market purchase, also known as ‘secondaries’, is that the latter usually include the acquiring of all portfolios of assets.