Shareholder Wealth Maximization Under Leveraged Buyouts

Leveraged Buyouts in Poland

Leveraged Buyouts and Private Equity

Steven N. Kaplan is Neubauer Family Professor of Entrepreneurship and Finance, University of Chicago Graduate School of Business, Chicago, Illinois. Per Strömberg is Professor of Finance at the Stockholm School of Economics and Director of the Swedish Institute of Financial Research (SIFR), both in Stockholm, Sweden. Both authors are also Research Associates, National Bureau of Economic Researc...

Shareholder Wealth Maximization and Social Welfare: A Utilitarian Critique

Many scholars and managers endorse the idea that the primary purpose of the !rm is to make money for its owners. This shareholder wealth maximization objective is justi!ed on the grounds that it maximizes social welfare. In this article, the !rst of a two-part set, we argue that, although this shareholder primacy model may have been appropriate in an earlier era, it no longer is, given our curr...

The performance of reverse leveraged buyouts ¬リニ

Reverse leveraged buyouts (RLBOs) have received increased public scrutiny but attracted little systematic study. We collect a comprehensive sample of 526 RLBOs between 1981 and 2003 and examine the three-year and five-year stock performance of these offerings. RLBOs appear to perform as well as or better than other initial public offerings and the stock market as a whole, depending on the speci...

Design and impacts of securitized leveraged buyouts

Private equity investors have traditionally used innovative financial methods in structuring their leveraged buyouts (LBO) deals. In recent years, they have frequently employed securitization to raise funds on the back of their acquisitions’ operating assets. A distinctive feature of these transactions is that they aim to enhance the securitizing LBO’s debt pay capacity through a set of structu...