Management of firm incentive to attempt leveraged-buyout

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1. What economic conditions would provide management of a firm incentive to attempt a leveraged-buyout. What other options are available to attempt to accomplish the same economic goals as the LBO?

2. What was the stated economic motivation for the change (Spin-off/Equity Carve-out)? Who were the economic beneficiaries? What are the critical assumptions? Does management explicitly benefit from this change? How did shareholders respond? What, if any, are the important distinctions between the two events?

Reference no: EM131899329

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