A leveraged buyout by a third party is often the result of managerial mistakes or management that has operated in its own self-interest rather than the firm's interest.

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A leveraged buyout by a third party is often sought when investors or shareholders believe that the current management team is not managing the company effectively or in the best interest of the firm. This may include mismanagement, poor financial performance, or other factors that have led to a decrease in the company's value. In such cases, a third party may see an opportunity to take control of the company, improve its operations, and profit from its future growth potential.

A Leveraged Buyout by a Third Party Is Often the Result