The intent of the owners in a whole-firm leveraged buyout may be to increase the efficiency of the bought-out firm and resell it in five to eight years.This tends to make the managers of the bought-out firm high risk takers, since they will probably not survive the resale and thus have little to lose.

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In a leveraged buyout, managers often become more risk-averse because they may have equity stakes or incentives tied to the firm's performance, aligning their interests with the firm's success to ensure their own job security and financial benefits.

The Intent of the Owners in a Whole-Firm Leveraged Buyout