LBOs are an example of a financial merger undertaken to create a high-debt private corporation with improved cash flow and value.

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LBOs (leveraged buyouts) involve using borrowed funds (i.e. high levels of debt) to acquire a company with the aim of improving its financial performance and ultimately creating value for investors. This is typically achieved through cost-cutting measures and other operational improvements that free up cash flow, which can then be used to pay down the debt and eventually increase shareholder returns.

LBOs Are an Example of a Financial Merger Undertaken to Create