Desirable LBO Candidates

1. A company with a proprietary product

2. Good growth potential

3. Large current assets in relation to total assets

4. Low debt

5. Stable - high margined earnings

6. Competent management team willing to be equity participants

7. Companies operating in a stable competitive market
 

Undesirable LBO Candidates

1. High technology companies

2. Commodity Business

3. Companies experiencing labor problems

4. Companies that have unions

5. Companies with a poor competitive position

6. Companies highly dependent on a few large customers

7. Business is becoming obsolete