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Hospital chain HCA relied heavily on revenue growth in its effort to take the firm private. On July 24, 2006, management again announced that it

Hospital chain HCA relied heavily on revenue growth in its effort to take the firm private. On July 24, 2006, management again announced that it would go private in a deal valued at $33 billion, including the assumption of $11.7 billion in existing debt. Would you consider a hospital chain a good or bad candidate for an LBO? Explain your answer.

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