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The very high initial leverage in an LBO is: Inconsistent with prudent financial management, Designed to be maintained for the entire term of the PE

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The very high initial leverage in an LBO is: Inconsistent with prudent financial management, Designed to be maintained for the entire term of the PE fund's investment in the firm. Expected to be paid down to a more sustainable level as quickly as reasonably possible. Excessive but PE funds are willing to bet that the firm can service it

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