Which of the following types of businesses would be most attractive to a financial buyer for an LBO?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Which of the following types of businesses would be most attractive to a financial buyer for an
LBO?
Select one:
O A fast growing manufacturing business with good cash flow generation, but major ongoing capital expenditure
requirements
O A fast growing Bio-tech company with significant investment requirements
OA slow growing manufacturing business with weak cash flow
OA slow growing distribution business with little capital investment requirement and strong stable cash flow
Transcribed Image Text:Which of the following types of businesses would be most attractive to a financial buyer for an LBO? Select one: O A fast growing manufacturing business with good cash flow generation, but major ongoing capital expenditure requirements O A fast growing Bio-tech company with significant investment requirements OA slow growing manufacturing business with weak cash flow OA slow growing distribution business with little capital investment requirement and strong stable cash flow
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