Search results for "leveraged buy-out"

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The Impact of Lbos on Investment Policies and Operations of Acquired French Firms

2002

This paper evaluates the extent that French LBO targets’ investment policy and operations can account for their overperformance discrepancy. Our empirical study has been carried out on 132 French LBOs between 1989 and 1994. The results show that the abnormal plunge in economic return cannot be explained by overinvestments or by inefficient working capital management. Nevertheless, abnormal increases in wages, supplies and/or sales price reductions appear to be prominent.

050208 finance05 social sciencesWorking capitalEconomic returnjel:G31Monetary economicsInvestment policyInvestment (macroeconomics)General Business Management and AccountingEmpirical research0502 economics and business8. Economic growthBusinessLeveraged buy-out;performance;investment policy;operationsSale price050203 business & management
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The Impacts of LBOs on the Performance of Acquired Firms: The French Case

2002

This paper investigates the financial characteristics and changes in performance of French companies involved in a leveraged buy-out. The empirical study covers a sample of 161 MBOs in France from 1988 to 1994. The acquired firms outperform their counterparts in the same sector of activity before and after the buy-out. However, unlike findings concerning LBOs in the USA and the UK, the performance of French firms falls after the operation is completed. This downturn in performance seems to be less detrimental to former subsidiaries of groups than to former family businesses.

leveraged buy-out;performance;French LBO;family businesses; group subsidiaries.business.industrySubsidiaryAccountingSample (statistics)jel:G34jel:G32Leveraged buyoutjel:L22Empirical researchAccountingBusiness Management and Accounting (miscellaneous)Operations managementBusinessFinanceJournal of Business Finance <html_ent glyph="@amp;" ascii="&"/> Accounting
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