Impact of leverage buyouts on target companies
Author(s)
Ma, Xingjian,S.M.Sloan School of Management.
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Alternative title
Impact of LBOs on target companies
Other Contributors
Sloan School of Management.
Advisor
Christopher Francis Noe.
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Show full item recordAbstract
This research studies the impact of LBO buyers' operation on target companies, mainly from the perspective of financial indicators and stock performance after a subsequent IPO. The results show that, on average, target companies show weaker profitability, lower operational efficiency and higher solvency risk. LBO buyers' operation is also shown to improve target companies' cash flow condition. After a subsequent IPO, target companies' stocks tend to under-perform the market during the first year, but three-year returns outperformed the market, on average.
Description
Thesis: S.M. in Management Studies, Massachusetts Institute of Technology, Sloan School of Management, 2019 Cataloged from PDF version of thesis. Includes bibliographical references (page 52).
Date issued
2019Department
Sloan School of ManagementPublisher
Massachusetts Institute of Technology
Keywords
Sloan School of Management.