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This paper analyzes the influence Leveraged Buyouts (LBOs) have on the operating performance of the LBO target companies' direct competitors. A unique and hand-collected data set on LBOs in the United States in the period 1985-2009 allows us to analyze the effects different restructuring...
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Revaluations of industry peers around horizontal acquisitions are negative when targets are private, but positive when … predictable revaluations. Supporting this idea, the “revaluation spread” is larger when peers' valuations deviate more from … fundamentals, varies with overall market misvaluation, predicts future industry returns, and is unrelated to peers' and industries …
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We show how temporary ownership by private equity firms affects industry structure, competition and welfare. Temporary ownership leads to strong investment incentives because equilibrium resale prices are determined by buyers incentives to block rivals from obtaining assets. These incentives...
Persistent link: https://www.econbiz.de/10009772935
This study aims to develop a real business life case on the two-step leveraged buyout transaction. Also, it is to share the case with the audience that might be globally related since the financial system has been global. And, consequently the language of financial reporting has been becoming...
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"This is a much-needed work in the financial literature, and it is the first book ever to analyse the use of Special Purpose Acquisition Companies (SPACs) from a theoretical and practical perspective. By the end of 2020, more than 240 SPACs listed in the U.S. (on NASDAQ or the NYSE), raising a...
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