easy · Investment Banking ma-lbo

In an LBO, which of the following actions directly supports the 'Operational Improvement' lever?

  1. Refinancing existing senior debt to a lower interest rate
  2. Implementing a cost-cutting program to expand EBITDA margins
  3. Issuing new high-yield bonds to pay a dividend to the sponsor
  4. Selling off core business units at a loss to simplify the balance sheet

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