[Verse 1] Private equity sharks circle the waters deep Target company swimming alone, finances weak Balance sheet studied, cash flows dissected clean Perfect candidate for the buyout machine [Chorus] Leverage, Buyout, debt's the key Borrow heavy, equity free Ten percent down, ninety borrowed tight LBO magic happens overnight Debt-to-equity climbing sky high Private ownership, public goodbye [Verse 2] Management stays but ownership shifts Pension funds and institutions give financial lifts Banks provide the senior debt secure Mezzanine financing fills gaps for sure [Chorus] Leverage, Buyout, debt's the key Borrow heavy, equity free Ten percent down, ninety borrowed tight LBO magic happens overnight Debt-to-equity climbing sky high Private ownership, public goodbye [Bridge] Cash flows service all that debt Operational improvements place the bet Strip assets, cut costs, maximize returns Five to seven years until the table turns Exit strategy through IPO or sale Private equity profits tell the tale [Verse 3] Target's assets back the borrowed gold Company's own strength makes the deal bold Interest payments eat the monthly pie Risk and reward amplified so high [Chorus] Leverage, Buyout, debt's the key Borrow heavy, equity free Ten percent down, ninety borrowed tight LBO magic happens overnight Debt-to-equity climbing sky high Private ownership, public goodbye [Outro] When debt exceeds what equity brings That's the song that leverage sings Buyout complete, the deal is done Private equity battle won
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