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    Takeovers Leveraged Buyouts

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    Minh Châu Tạ Thị
    1) The document discusses takeovers and leveraged buyouts (LBOs). It provides examples to match phrasal verbs related to takeovers and sentences describing aspects of LBOs. 2) Specifically, it gives a scenario of a failed takeover attempt of MacKenzie PLC and has students use the phrasal verbs in sentences to complete a short story about the takeover bid. 3) It also discusses where money can be borrowed from for LBOs, such as banks or junk bonds, and that LBOs involve buying a company with borrowed money then restructuring and selling parts to pay back lenders and hopefully make a profit.

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    © All Rights Reserved
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    Takeovers Leveraged Buyouts

    Uploaded by

    Minh Châu Tạ Thị
    151 views3 pages
    1) The document discusses takeovers and leveraged buyouts (LBOs). It provides examples to match phrasal verbs related to takeovers and sentences describing aspects of LBOs. 2) Specifically, it gives a scenario of a failed takeover attempt of MacKenzie PLC and has students use the phrasal verbs in sentences to complete a short story about the takeover bid. 3) It also discusses where money can be borrowed from for LBOs, such as banks or junk bonds, and that LBOs involve buying a company with borrowed money then restructuring and selling parts to pay back lenders and hopefully make a profit.

    Original Title

    TAKEOVERS LEVERAGED BUYOUTS

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    1) The document discusses takeovers and leveraged buyouts (LBOs). It provides examples to match phrasal verbs related to takeovers and sentences describing aspects of LBOs. 2) Specifically, it gives a scenario of a failed takeover attempt of MacKenzie PLC and has students use the phrasal verbs in sentences to complete a short story about the takeover bid. 3) It also discusses where money can be borrowed from for LBOs, such as banks or junk bonds, and that LBOs involve buying a company with borrowed money then restructuring and selling parts to pay back lenders and hopefully make a profit.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    151 views3 pages

    Takeovers Leveraged Buyouts

    Uploaded by

    Minh Châu Tạ Thị
    1) The document discusses takeovers and leveraged buyouts (LBOs). It provides examples to match phrasal verbs related to takeovers and sentences describing aspects of LBOs. 2) Specifically, it gives a scenario of a failed takeover attempt of MacKenzie PLC and has students use the phrasal verbs in sentences to complete a short story about the takeover bid. 3) It also discusses where money can be borrowed from for LBOs, such as banks or junk bonds, and that LBOs involve buying a company with borrowed money then restructuring and selling parts to pay back lenders and hopefully make a profit.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    TAKEOVERS

    Ex.1
    Match up the phrasal verbs from 1 to 15 with the verbs that have a similar meaning from
    a to o.
    1. act on advice a. accept an offer
    2. adhere to principles b. accumulate capital
    3. branch out c. acquire
    4. build up capital d. await with pleasure
    5. cash in on e. collapse
    6. draw up a plan f. defeat
    7. fall through g. diversify
    8. fight off h. follow advice
    9. get away with something i. invent
    10. look after j. prepare a plan
    11. look forward to k. profit from
    12. make up l. protect
    13. rely on or count on someone m. respect principles
    14. take over a company n. succeed in doing something wrong
    15. take up an offer o. trust someone
    1) h
    2) m
    3) g
    4) b
    5) k
    6) j
    7) e
    8) f
    9) n
    10) l
    11) d

    1
    12) i
    13) o
    14) c
    15) a
    Ex. 2
    Use the phrasal verbs from 1 to 15 to complete the text below (using each verb once
    only). You may need to use the past tense, the past participle or the present continuous
    form.

    When we try to (1) take over MacKenzie PLC, we were all (2) looking forward to an
    easy victory. We thought that most of their shareholders would (3) cash in on the
    chance of a quick profit, but the directors were determined to (4) fight off our bid. They
    (5) made up a lot of untrue stories about our company, and criticized our last Annual
    Report, claiming that we hadn’t (6) adhere to Genarally Accepted Accounting
    Principles, and that our accountants had (7) gotten away with a lot of window dressing.
    They were able to convince their shareholders that they could (8) rely on them (the
    current management) to (9) look after their interests better than we could. Over the
    years, they had obviously (10) built up a lot of respect from their shareholders, who
    (11) acted on the board of directors’ advice, and didn’t (12) take up our offer; thus the
    whole deal (13) fell through. But we are now (14) drawing up alternative plans to (15)
    branch out in a new direction.

    LEVERAGED BUYOUTS
    EX. 1
    Match the responses from 1 to 9 with the sentences from a to h:
    1. What's the difference between a takeover bid and an LBO?
    2. Borrowed from where?
    3. Ah-huh. Guess what my next question is?
    4. OK, so you borrow money and buy a company. Then what?
    5. Uh!
    6. And then you pay back the bank or the bond-holders?
    7. Sounds easy.
    8. Oh I see. So it can go wrong. Just one more thing ...
    9. Forget it!

    2
    a. Exactly. And make a profit in the process.
    b. LBO is short for "leveraged buyouts". It involves buying a company with a lot of
    borrowed money.
    c. Not an appalling joke about "elbows", I hope?
    d. OK. They are bonds that are considered to be fairly risky but which pay a high rate of
    interest. People buy them because the high returns generally compensate the risk of
    default.
    e. Well, it can go wrong. If there's a recession or a stock market crash it makes it more
    difficult to sell the assets, and if you have less revenue, it becomes harder to pay the
    interest on the borrowed money.
    f. You choose a large, badly-managed, inefficient corporation or conglomerate, or a
    company with huge cash reserves, or whose assets are worth more than its stock
    market value. You buy it, restructure it, and sell the profitable bits. It's called asset-
    stripping.
    g. Wherever you can get it. You can try to get an ordinary loan from a bank, or you can
    try to sell junk bonds.
    h. You sell it again.

    1) B
    2) G
    3) D
    4) H
    5) F
    6) A
    7) E
    8) C

    EX. 2
    Add appropriate words to these sentences:
    1. Leverage means using a high proportion of borrowed money.
    2. LBOs are often financed by junk bonds.
    3. The people who try LBOs compare the value of a company's assets with its stock
    market value
    4. The profit in an LBO often comes from asset-stripping
    5. LBOs have led to several conglomerates being split up.

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