Why do public strategic bidders typically perform LBO Analysis as part of their valuation work?

Why do public strategic bidders typically perform LBO Analysis as part of their valuation work? 





A) To Comply with an SEC requirement enacted in 2005
B) To assess the possibility of bidding for the target in a separate leveraged entity
C) To determine what competing financial sponsors might bid for the target
D) Their existing lenders require this type of analysis to be performed







Answer: C