what types of companies are attractive for lbos 
equity firms typically target mature companies in established industries for leveraged buyouts rather than fledgling or more speculative industries 8 the best candidates for lbos have historically had strong dependable operating cash flows well established product lines strong management teams and viable exit strategies so that the acquirer can realize gains the bottom linea leveraged buyout lbo refers to the process of one company acquiring another using mostly borrowed funds to carry out the transaction firms often carry out lbos to take a company private or to spin off part of an existing business leveraged buyouts are often seen as a predatory business tactic because the target company has little control over approving the deal and its own assets can be used as leverage against it lbos declined following the 2008 financial crisis but have seen increased activity since then 