The Application of a Leveraged Buyout: American Outdoor Brands Corporation

Private equity funds have seen enormous growth since their initial popularity in the 1980s. Investments in companies have produced long-term returns that have not been matched by other asset classes causing an expansion of private equity firms. Private equity firms use a unique capital structure through leveraged buyouts in order to maximize equity returns. The purpose of this paper is to perform a hypothetical leveraged buyout of American Outdoor Brands Corporation and apply this highly debt-based capital structure to the firm itself.