search query: @indexterm Management buy-outs / total: 202
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| Author: | Gart, A. |
| Title: | Leveraged buyouts: a re-examination |
| Journal: | Advanced Management Journal
1990 : SUMMER, VOL. 55:3, p. 38-46 |
| Index terms: | CORPORATE FINANCE COMPANY OWNERSHIP MANAGEMENT BUY-OUTS |
| Language: | eng |
| Abstract: | Few trends in corporate America have roused such controversy as the 1980s leveraged buy-out (LBO) wave and the accompanying explosion of junk bond financing. A typical LBO is described. During the period from 1977-86, the compound return on junk bond was 208 p.c. The junk bond market has been in disarray since 1989 because of recessionary fears and a number of announced bankruptcies of firms that were heavy issuers of junk bonds. In addition, major institutional investors withdrew from this market. Some recent LBOs are reviewed. Most successful LBO transactions are characterized. The most important public policy issues are investigated. LBO expectations for the 1990s are shown. |
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