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 5-8 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 have incentives to improve firm performance to increase its resale value, which can lead to risk-averse behavior to ensure stability and profitability rather than high-risk taking.

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