A leveraged buyout (LBO)is when we tend to find firms at their lowest debt levels.

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A leveraged buyout (LBO) is when a company is acquired using a significant amount of debt financing, often leaving the company with high levels of debt. LBOs typically occur when a company is undervalued or has substantial assets that can be used as collateral for the debt financing. Therefore, it is not necessary for the company to be at its lowest debt levels for an LBO to occur.

A Leveraged Buyout (LBO)is When We Tend to Find Firms