In earlier years, leveraged buyouts became synonymous with the _____ LBO.
A) bust-up
B) build-up
C) owner-financed
D) publicly funded

Question

Quizplus · Accepted Answer

In earlier years, leveraged buyouts were often associated with the bust-up LBO, where companies were purchased solely for the purpose of breaking them up and selling off the individual parts for a profit. This practice has since become less common, with more emphasis now placed on the build-up strategy, where the focus is on growing and improving the company after acquisition.

In Earlier Years, Leveraged Buyouts Became Synonymous with the _____