An attractive candidate for acquisition through a leveraged buyout should possess all of thefollowing characteristics EXCEPT
A) a low level of debt.
B) a solid profit history and reasonable expectations for growth.
C) low fixed assets.
D) stable and predictable cash flows.

Question

Quizplus · Accepted Answer

Low fixed assets are not a typical characteristic sought in leveraged buyouts; rather, companies with significant fixed assets are often preferred as they can be used as collateral for the debt financing.

An Attractive Candidate for Acquisition Through a Leveraged Buyout Should