Which of the Following Is Generally a Way That LBOs

Multiple Choice

Which of the following is generally a way that LBOs can help a firm realize its potential value?

A) The synergies created allow for cost savings
B) The transaction reduces the disparity between a firm's actual and potential share price
C) The reduction in the number of shares outstanding makes it possible to give a firm's management a large equity share
D) The acquisition reduces the likelihood of competition in the industry
E) The buyout gives an opportunity to adjust the management structure and makeup