Discuss the following aspects of leveraged buyouts and management buyouts:
-What type of company makes the ideal target for a leveraged buyout or a management buyout
-How is the capital structure of the typical LBO or MBO formed? What is the source of high risk and cost reduction in the capital structure of the typical LBO or MBO?
-What is the second source of cost savings in the LBO or MBO?
– What is the ultimate goal of the insider owners who initiate the LBO or MBO?