One of the key attributes that makes a firm a good candidate for an LBO is that it has stable and predictable cash flows that are adequate to meet interest and principal payments on the debt and provide adequate working capital.

Question

Quizplus · Accepted Answer

This statement is true. Stable and predictable cash flows are important for a firm undergoing an LBO because it allows them to meet their debt payments and maintain adequate working capital. This reduces the risk of defaulting on the debt and helps to ensure the success of the LBO.

One of the Key Attributes That Makes a Firm a Good