Reasons for the popularity of LBOs during the 1980s.

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…sh will be paid out to investor after a run out of positives NPV projects instead of wasteful investment, managers perquisites or private benefit. Therefore, in today's economy the LBO activity is still playing an important role as a dramatic way of corporate restructuring. However the more desirable part of LOBs are its effects in efficiency, productivity, avoiding the managers and Shareholders problem and the final result of changes in positives capital gains for shareholders.