Value Creation in Leveraged Buyouts


Book Description

Based on a dataset of over 3,000 leveraged buyout transactions, including performance data, Nicolaus Loos analyses how financial investors create economic value through their investments. He shows that various exogenous factors with respect to timing, industry, public market as well as deal specific factors can statistically be related to a buyout deal's performance. He also provides evidence of a "GP effect" in leveraged buyouts, i.e. that certain characteristics of a Private Equity firm and its investment professionals as well as a firm's buyout strategy approach and certain buyout target characteristics are important success factors.







Value Creation in Successful LBOs


Book Description

Daniel Pindur analyzes value creation in successful LBOs on investment level conceptually and empirically from an LBO equity investor perspective. Based on the LBO transaction model, the author decomposes total proceeds to LBO equity investors and derives a two-tier framework of an internal and an external perspective, thereby structuring the conceptual discussion of various determinants affecting these components.







Value Creation in Private Equity-Sponsored Leveraged Buyouts


Book Description

This paper estimates an empirical model of two-sided many-to-many matching game in which private equity investors acquire publicly traded companies in leveraged buyouts, and examines the value creation of these transactions. This method calculates match-specific values by exploiting the characteristics of both private equity investors and companies. It is therefore able to identify and quantitatively estimate the value created through investor influence and that created through debt. In public-go-private transactions completed between 1986 and 2007, the direct influence of private equity investors generates a significant value which is equal to 7.8 percent of the pre-buyout market capitalization of the going private companies. However, the value generated through debt is insignificant.




German Buyouts Adopting a Buy and Build Strategy


Book Description

Within the frame of a case study and questionnaire-based research, Nils Hoffmann investigates the key characteristics of buy and build strategies affected by private equity investors in Germany between 1998 and 2003. The author analyzes which value drivers and management strategies financial sponsors use to generate the return targeted. Furthermore, the research presented provides evidence concerning key success factors of the most profitable buy and build strategies.




Leveraged Buyouts, + Website


Book Description

A comprehensive look at the world of leveraged buyouts The private equity industry has grown dramatically over the past twenty years. Such investing requires a strong technical know-how in order to turn private investments into successful enterprises. That is why Paul Pignataro has created Leveraged Buyouts + Website: A Practical Guide to Investment Banking and Private Equity. Engaging and informative, this book skillfully shows how to identify a private company, takes you through the analysis behind bringing such an investment to profitability—and further create high returns for the private equity funds. It includes an informative leveraged buyout overview, touching on everything from LBO modeling, accounting, and value creation theory to leveraged buyout concepts and mechanics. Provides an in-depth analysis of how to identify a private company, bring such an investment to profitability, and create high returns for the private equity funds Includes an informative LBO model and case study as well as private company valuation Written by Paul Pignataro, founder and CEO of the New York School of Finance If you're looking for the best way to hone your skills in this field, look no further than this book.




Leveraged Buyouts


Book Description

"Shows how to identify a private company, takes you through the analysis behind bringing such an investment to profitability---and further create high returns for the private equity funds. It includes an informative leveraged buyout overview, touching on everything from LBO modeling, accounting, and value creation theory to leveraged buyout concepts and mechanics."--Publisher description.







Reverse Leveraged Buyout


Book Description

This study offers an approach to the value creation problem in Reverse Leveraged Buyout (RLBO) transactions. It presents an overview of the actual state of the Private Equity industry and a description of RLBO stakeholders, rationale, processes and products. The different drivers of the value creation or destruction during the private period ownership are exposed and depicted with a sample case. The methodology for the analysis includes an asset pricing perspective (CAPM) and a financial statements analysis. The goal of the case is to examine what would've happen to the value of the firm if the firm were not gone private. The work should be read from the point of view of an investor considering to buy shares from a PE-backed IPO firm.