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

Question

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A firm with a low level of debt and high level of liquid assets is attractive for a Leveraged Buyout (LBO) because it can take on the additional debt needed for the LBO and use its liquid assets as collateral, making the financing of the LBO more feasible and less risky for lenders.

One of the Key Attributes That Makes a Firm a Good