In addition to numerous changes in the taxation of companies in Germany, the corporate tax reform of 2008 includes the introduction of a so-called interest barrier as a key measure. This controversially debated regulation aims to prevent tax-abusive financing arrangements by limiting the deductibility of financing expenses as business expenses, while also improving the equity capital structure of German companies. This interest barrier poses a particular challenge for financial investors, especially private equity firms, which often finance company acquisitions using above-average amounts of debt in the context of so-called leveraged buyouts (LBOs). Therefore, this study not only provides a detailed presentation of how the interest barrier functions but also examines the classic processes involved in LBO transactions.