Abstrakt
One of the economic strategies aimed at achieving economic growth and maximizing profits are the so-called mergers and acquisitions. These are relatively complex economic processes consisting mainly of the purchase of one company (or its assets) by another and in the possible subsequent merger into a successor entity, while in business practice they are used mainly as one of the strategies to achieve economic growth and maximize profits.
Mergers and acquisitions are currently widely carried out with the help of external loan financing. This article provides a professional legal introduction to the issue of loan acquisition financing and the so-called leveraged buyout, which consists in loan financing of the purchase of a company or its assets and subsequent repayment of debts from the loan using funds generated by the acquired company or assets.
The article also outlines the method of loan acquisition financing together with some findings of financial law theory regarding loan as such and loan law. Individual stakeholders and their interests are also mentioned.
Finally, the article briefly discusses the institute of securing debts from an acquisition loan through a private law institute of a pledge, which in practice is an inseparable part of any larger loan financing.