Technology firms are often regarded as lacking two of the aforementioned traits that characterize an attractive LBO target: low valuation and high cash flows. To reflect on how technology firms became targets for leveraged buyouts, the following treatment first looks at the meaning of the term “technology firm”, and follows up with a discussion of the rationale for technology buyout investing. Some final remarks consider current trends surrounding the “emergence of technology buyouts”.45
KeywordsCash Flow Private Equity Technology Company Technology Sector Computer Service
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