In this paper, we empirically examine whether buoyant market conditions in the buyout industry can explain the average post-buyout deterioration in target operating performance in Europe during the period 1999–2009. We show that the average industry-adjusted ratio of target EBITDA to sales...

Using a unique dataset of 859 leveraged buyouts in Europe during the period 1999–2009, the authors’ recent study reports that buyout financiers syndicate their transactions to other buyers to achieve benefits that include diversification of different types of target risk, the combination of...