Published by:
Harvard Business Publishing
Length: 8 pages
Share a link:
https://casecent.re/p/47111
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
Little reliable data is available on the structure and performance of leveraged buyouts. This statistical analysis of 320 deals in the United States and Great Britain offers some intriguing insights into the LBO phenomenon. For example, managers contribute only 3% of the cost of buyouts, but control 30% of the initial ownership; LBOs make impressive efficiency gains, but often fail to meet pre-buyout forecasts; and owners are cashing out more quickly than planned.
About
Abstract
Little reliable data is available on the structure and performance of leveraged buyouts. This statistical analysis of 320 deals in the United States and Great Britain offers some intriguing insights into the LBO phenomenon. For example, managers contribute only 3% of the cost of buyouts, but control 30% of the initial ownership; LBOs make impressive efficiency gains, but often fail to meet pre-buyout forecasts; and owners are cashing out more quickly than planned.