search query: @indexterm Management buy-outs / total: 202
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| Author: | Kaplan, S. |
| Title: | Management buyouts : evidence on taxes as a source of value. |
| Journal: | Journal of Finance
1989 : JUL, VOL. 44:3, p. 611-632 |
| Index terms: | MANAGEMENT BUY-OUTS TAXATION |
| Language: | eng |
| Abstract: | The value of tax benefits in 76 management buyouts of public companies, complemented in the period 1980 to 1986, is estimated. The median value of tax benefits, estimated at the time the buyout company goes private, has a lower bound of 21 p.c. and an upper bound of 143 p.c. of the premium paid to pre-buyout shareholders. The estimated value depends on the rate buyout debt is repaid and the tax rate applied to the interest deductions. The results suggest that tax benefits are an important source of the wealth gains in management buyouts. |
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