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Leveraged Buyout

Wang, Jin (2009)
Department of Economics
Abstract
Leveraged buyout transaction is the most familiar PE investment technique in financial market. It is controversial for high debt financing since some companies go to bankruptcy for it, and some companies achieve another boom. Debt financing is cheaper than equity financing, and tax shield would also be attractive for choice of high debt capital structure. Potential LBO companies should be mature, stable cash generation since high debt induces high interest payment. Thus cash flow plays important role in LBO transaction, many company goes to bankruptcy due to interest payment delay.
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author
Wang, Jin
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Private equity, Capital Structure, Leveraged buyout, cash flow, Economics, econometrics, economic theory, economic systems, economic policy, Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik
language
English
id
1436945
date added to LUP
2009-06-04 00:00:00
date last changed
2010-08-03 10:52:17
@misc{1436945,
  abstract     = {Leveraged buyout transaction is the most familiar PE investment technique in financial market. It is controversial for high debt financing since some companies go to bankruptcy for it, and some companies achieve another boom. Debt financing is cheaper than equity financing, and tax shield would also be attractive for choice of high debt capital structure. Potential LBO companies should be mature, stable cash generation since high debt induces high interest payment. Thus cash flow plays important role in LBO transaction, many company goes to bankruptcy due to interest payment delay.},
  author       = {Wang, Jin},
  keyword      = {Private equity,Capital Structure,Leveraged buyout,cash flow,Economics, econometrics, economic theory, economic systems, economic policy,Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik},
  language     = {eng},
  note         = {Student Paper},
  title        = {Leveraged Buyout},
  year         = {2009},
}