In a leveraged buyout,the equity holders expect a successful buyout if:

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All of these options are factors that equity holders consider important for a successful leveraged buyout. The firm generating enough cash to service the debt in the early years is crucial, as it provides a strong financial foundation for the buyout. Taking the company public or selling it in 3 to 7 years is also important, as it allows the equity holders to realize their investment and exit the buyout. Finally, the attractiveness of the company to potential buyers as the buyout matures is critical to ensuring a successful exit strategy for the equity holders.

In a Leveraged Buyout,the Equity Holders Expect a Successful Buyout