Leveraged buyouts require a target firm ________.
A) to have low level of investments in fixed assets
B) to possess high leverage in its capital structure
C) to maintain relatively high provision for doubtful accounts
D) to have a high level of bankable assets

Question

Quizplus · Accepted Answer

Leveraged buyouts typically require the target firm to have a high level of bankable assets. These assets can be used as collateral for the loans needed to finance the buyout, making firms with significant tangible assets more attractive targets.

Leveraged Buyouts Require a Target Firm ________