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Private-equity firms are experiencing a crisis as buyout deal volumes and profits decline. The combined effects of the credit crunch, debt burdens, and weak stock markets have hurt once-promising private-equity transactions.

On larger deals, certainly those above 500m [euro], the job of arranging mezzanine debt is now almost exclusively done by the one-stop-shop investment banks, which are able to underwrite bigger [...]

After providing historical and background information on employee share ownership plans ('ESOPs'), this article will examine the role of these plans both as a method of financing buyouts and as [...]

Sale-leaseback transactions have become another source of financing for venture capitalists, leveraged buyout companies and private equity firms. An analysis of several sale-leaseback transactions is provided.

The one stop shop is a high-growth sector of the capital market. These operators can provide fast, simple solutions and reduce the number of conditional clauses in acquisition bids. The larger operators, including Goldman Sachs and CSFB, are proving particularly successful in the developing European market due to their US experience. Some analysts fear that the leverage finance market could see too much activity, and that operators could make expensive mistakes. Others believe that problems are a natural facet of a high-risk market and do not indicate overall ill-health.

Complete tender offers, in which at least 90% of outstanding shares are bought by a small number of bidders, are found to result in larger gains for shareholders than do partial acquisitions. Gains of as high as 21.90% are acheived through complete tender offers as compared to a 12.80% gain for partial acquisitions. Shareholders view complete tender offers as more beneficial in comparison with partial offerings.

This paper uses a detailed database on corporate operations to investigate the effects of leveraged buyouts on corporate restructuring activity in a sample of 33 large LBO firms. The evidence we present strongly suggests that the governance structure of LBO firms is able to induce managers to forego growth and downsize firms more effectively than the governance structure of public corporations. The evidence is also consistent with the argument that one purpose of leveraged buyouts is to reconfigure target firms' operations. The results of this study suggest that corporate restructuring activity may be an important source of the efficiency gains observed in prior studies of the accounting performance of LBO firms. (Reprinted by permission of the publisher.)

* In a leveraged buyout (LBO) transaction, a group of investors finance the acquisition of a corporation or division mainly by borrowing against the target's future cash flows. While not [...]

* This study investigates the consequences of leveraged buyouts (LBOs) on operating performance using a sample of 44 going-private transactions completed in the period 1985-1989. Previous studies have documented increases [...]

* On July 28, 1988, Revco Drug Stores filed for bankruptcy in what is arguably the most notable failure in the annals of highly leveraged transactions. The firm collapsed merely [...]

Abstract * Leveraged buyouts (LBOs) have become an important part of the world's economy. Prior research, has produced conflicting results on whether LBOs erode. R&D efforts (National Science Foundation, 1989) [...]

The private-equity business has yet to acknowledge that their investments are either worth little or nothing at all. This sector is facing its biggest crisis as financing for leveraged buyouts disappear.

The Re-Enterprising Of Corporate America: A Timely Investment As a result of the soaring debt burden in the 1980's, created largely through junk bonds and leveraged buyouts, the end of [...]

A leveraged buyout loan transaction is subject to the risks posed by various state and local laws designed to protect unsecured creditors. The most significant risk arises out of the application of the fraudulent conveyance laws. While LBO lenders cannot completely insulate themselves from such risk, a separately focused and well-documented credit analysis can mitigate the legal risk. In this article, attorney Ptasznik suggests some analytical and documentary steps - from application through closing - that a loan officer should take for an LBO credit. (Reprinted by permission of the publisher.)

Nordic Telephone, a consortium of private equity funds, including JPMorgan, Deutsche Bank, Barclays Capital, and Royal Bank of Scotland, is acquiring Denmark based TDC, which is a leading telecommunication company. Consideration for the said transaction is $12 billion. So far, this is the highest amount ever paid in a leveraged buyout. Other mergers and acquisitions in the sector are also mentioned.

Key trends of 2002 Dramatic fall in lending volumes--The European telecoms market, which had dominated syndicated lending in Europe for some time, ground to a halt in 2002. As a [...]

High yield, or junk, bonds are playing an increasingly significant part in the European leveraged buyout market. They have risks and limitations, but the fixed yield also offers advantages to both buyers and sellers. European operators generally have to place major junk bond issues on the US market in addition to the European market, and US investors are proving more willing to take up issues denominated in local European currencies, particularly the Deutschmark.

Recent LBO Decisions Provide Little Comfort to Banks Since the very beginning of the takeover era, the banking community has been concerned about its exposure to fraudulent-conveyance claims. Bankers have [...]

Citigroup ended the fourth quarter of 2007 with just over $40 billion of leveraged debt on its books, but the bank may be ready to sell some $12 billion of [...]

The current buyout binge by private equity investors has been duly noted in the business press. Tales of such investors paying themselves hundreds of millions of dollars in a single [...]

The high-yield bond market has lost plenty of business to leveraged loans over the past few years, and that could mean that many speculative-grade companies might end up with a [...]

The credit cycle is quickly growing long in the tooth, but that is not deterring HSBC from trying to break into the leveraged finance business. The bank dabbled in leveraged [...]