In a leveraged buyout,the equity holders expect a successful buyout if:

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All of the options are important for the success of a leveraged buyout. The firm needs to generate enough cash to pay off the debt in the early years in order to avoid default. In addition, the option to take the company public or sell it within three to seven years is important as this provides an exit strategy for the equity holders. Lastly, if the company is attractive to buyers as the buyout matures, it will increase the likelihood of a successful sale and a return on investment.

In a Leveraged Buyout,the Equity Holders Expect a Successful Buyout