An attractive candidate for acquisition through leveraged buyout should possess which of the following characteristics?

Question

Quizplus · Accepted Answer

An attractive candidate for acquisition through leveraged buyout should possess all of the characteristics listed in options A, B, C, and D. These characteristics ensure that the acquired company can generate sufficient cash flows to service the debt incurred in the leveraged buyout and that those cash flows are stable and predictable, reducing the risk of default. A good position in the industry with a solid profit history and reasonable expectations of growth ensure that the acquired company is viable and has prospects for future growth. A relatively low level of debt and a relatively high level of "bankable" assets that can be used as loan collateral are both desirable characteristics that make financing of the leveraged buyout easier and reduce the risk of default.

An Attractive Candidate for Acquisition Through Leveraged Buyout Should Possess