One of the key attributes that makes a firm a good candidate for an LBO is that it has a relatively high level of debt and a low level of liquid assets.

Question

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A good candidate for a Leveraged Buyout (LBO) typically has a low level of debt and a strong cash flow, which allows the new owners to service the debt incurred during the buyout. High levels of liquid assets are also favorable as they can be used to pay down debt.

One of the Key Attributes That Makes a Firm a Good