A leveraged buyout (LBO)retailer has high assets relative to net worth.

Name: A leveraged buyout (LBO)retailer has high assets relative to net worth.
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Question

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In an LBO, the acquiring company typically uses a significant amount of debt financing to fund the purchase of the target company. This results in a higher proportion of assets relative to net worth, as the debt increases the total assets of the acquiring company while the net worth remains the same.

A Leveraged Buyout (LBO)retailer Has High Assets Relative to Net