LBO Technicals

Hi, I have a final coming up about LBOs and would greatly appreciate if you guys can verify my answers to these questions.

1) If I am a strategic acquirer, why would I not utilize a large proportion of debt like LBOs?

Strategic acquirers have the focus to own the target company for an indefinite timeline, thus they would like to own the majority of the company  for control through equity.

2) Would you expect sponsors to use a higher or lower proportion of equity in recession?

Financial sponsors would use a lower proportion of equity in recession because interest rates would fall, making debt cheaper. If they can take on more debt, there would be a higher tax shield and less risk on the equity providers.

3) Given the reliance on debt financing, what could skew the outcome of an LBO?

No idea, broken covenants maybe?

4) How do different types of debt impact an LBO?

The proportion of debt of each debt type may impact the outcome of an LBO due to the mandatory repayments, higher/lower interest rates, and whether or not the debt is a bullet payment?