An attractive candidate for acquisition through leveraged buyout should possess which of the following characteristics:
A) a relatively low level of debt.
B) stable and predictable cash flows that are adequate to meet interest and principal payments on the debt and provide adequate working capital.
C) a good position in its industry with a solid profit history and reasonable expectations of growth.
D) a relatively high level of "bankable" assets that can be used as loan collateral.
E) all of the above.

Question

Quizplus · Accepted Answer

All of the listed characteristics are important for an attractive candidate for acquisition through leveraged buyout. A low level of debt and stable cash flows ensure that the company can meet its financial obligations and invest in growth. A good position in the industry with solid profit history and growth potential is important for long-term success. Bankable assets can also be useful for securing financing. Thus, all of these characteristics are desirable for an attractive candidate for acquisition through leveraged buyout.

An Attractive Candidate for Acquisition Through Leveraged Buyout Should Possess