Which of the following is one of the two most important sources of value in a leveraged buyout?

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Interest tax shields associated with debt are one of the most important sources of value in a leveraged buyout because it allows the acquiring company to deduct interest payments from their taxable income, reducing their overall tax burden. This can significantly increase cash flow and improve the financial performance of the acquired company. The second most important source of value would be synergies, which result from combining the operations, resources, and expertise of the two companies to achieve cost savings, increase revenue, and improve overall performance. The interest tax shields associated with debt can greatly increase the cash flows available to pay down debt or distribute to equity holders, which is a key component of creating value in a leveraged buyout. While the other options may also contribute to value creation, they are not typically considered as important as the tax benefits of debt financing.

Which of the Following Is One of the Two Most