1. Explain, in your own words, characteristics that make a firm a good candidate for an LBO.

2. Explain, in your own words, what is a contingent payment, why is it used and what are the common types of contingent payments.

3. Explain, in your own words, why there might be a conflict of interest in a management buyout.

4. Explain, in your own words, what an earnout agreement is and how it shares the risk of a merger deal between the target and acquirer?

5. Explain, in your own words, the pros and cons of an asset deal.