True or false?
a. One of the first tasks of an LBO’s financial manager is to pay down debt.
b. Once an LBO or MBO goes private, it almost always stays private.
c. Targets for LBOs in the 1980s tended to be profitable companies in mature industries.
d. “Carried interest” refers to the deferral of interest payments on LBO debt.
e. By 2008 new LBO and private-equity transactions were extremely rare.
f. The announcement of a spin-off is generally followed by a sharp fall in the stock price.
g. Privatizations are generally followed by massive layoffs.
h. On average, privatization seems to improve efficiency and add value.