When performing a precedent transaction analysis, in what scenario would information be found in an S-4 if the target was private in an LBO?
A)When non-public financing is used
B)When public debt securities are issued
C)If the acquisition is over $1,000.0m
D)There is never information on a private transaction

Question

Quizplus · Accepted Answer

In a leveraged buyout (LBO) where the target is private, an S-4 filing would be relevant if the acquiring company (often a private equity firm) issues public debt securities to finance the acquisition. The S-4 is a registration statement filed with the SEC, which includes information on the merger, acquisition, or exchange offer, providing details that would be necessary for public investors of the debt securities.

When Performing a Precedent Transaction Analysis, in What Scenario Would