[Seabiscuit]

LBOs are not synonymous with private equity.

LBOs do not always lead to corporate raiding or asset stripping, in the same way that the restructuring and rationalisation that follow an LBO does not always result in mass redundancies. Theoretically, LBOs allow a company to avoid the pressure of the quarterly reporting cycle for a while and make more long-term decisions without facing instant 'repercussions'.

If you're interested in how LBOs got the reputation they got, and a case study in the biggest and most notorious LBO, try 'Barbarians at the Gate', which follows the LBO of RJR Nabisco.