The Weird World of Leveraged Buyouts - Page 48

C2 Proficiency · Word Formation · Ready for C2 Proficiency Workbook, Macmillan

For questions 1–8, read the text below. Use the word given in capitals at the end of some of the lines to form a word that fits in the gap in the same line. There is an example at the beginning.

RELATE

ACQUIRE

PAY

IRONY

SETTLE

EFFORT

EXTORT

GRUNT

Want to buy a multinational corporation but have (0) ___ funds to do it? No problem! Just use a leveraged buyout (LBO). In an LBO, the buyer uses a (1) ___ small sum of money, typically 10% of the total price, to purchase a publicly traded company. The remaining 90% necessary for the (2) ___ comes from a bank, with the acquired business itself serving as collateral to guarantee that the loan will be (3) ___ . (4) ___ , LBOs often target strong, successful businesses, which provide the greatest security for lenders. It's no wonder, then, that the threat of an LBO is so (5) ___ for business leaders who wish to retain control of the companies they run. In case you're now contemplating your own LBO, be warned that it's not quite as (6) ___ as it sounds. Above all, you'll need to persuade a bank to lend you the money, usually at an absolutely (7) ___ interest rate. Plus, even if your plan comes off, you'll have to deal with the wrath of (8) ___ managers and employees.

The weird world of leveraged buyouts

SUFFICE

Available as a free printable PDF worksheet with an optional answer key.

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