Which statement best describes leveraged buyouts (LBOs) ?

A) LBOs occur when a firm issues equity and uses the proceeds to take a firm public.
B) In a typical LBO, bondholders do well but shareholders see their value decline.
C) Firms are forbidden by law to sell any assets during the first five years following a leveraged buyout.
D) The objective is to take the firm public again or to sell to others in a few years after boosting the firm's value through efficient management.

Leveraged buyouts (LBOs) are transactions in which a company is acquired using a large amount of borrowed money, using the assets of the company to secure the debt. The objective of an LBO is to boost the firm's value through efficient management and then take the firm public again or sell to others in a few years after making necessary changes. Choice A is incorrect because LBOs involve taking a private company private, not public. Choice B, while sometimes true, is not necessarily the case in every LBO. Choice C is incorrect as there are no laws forbidding the selling of assets after an LBO.