A lot of the companies that get bought in LBOs aren't R&D heavy. For instance, you'll rarely see a pharma company LBO'd. Even in tech, the type of companies yo

A lot of the companies that get bought in LBOs aren't R&D heavy. For instance, you'll rarely see a pharma company LBO'd. Even in tech, the type of companies you see bought out are ones like Rackspace. Not exactly cutting edge scientific research firms. LBO firms typically want a lot of physical assets and stable cash flow, i.e old economy firms like utilities and manufacturers and retailers.