The Performance of Reverse Leveraged Buyouts

Author

Jerry CAO, Singapore Management UniversityFollow
Josh Lerner, Harvard Business School

Publication Type

Journal Article

Version

submittedVersion

Publication Date

2-2009

Abstract

Reverse leveraged buyouts (RLBOs) have received increased public scrutiny but attracted little systematic study. We collect a comprehensive sample of 526 RLBOs between 1981 and 2003 and examine the three-year and five-year stock performance of these offerings. RLBOs appear to perform as well as or better than other initial public offerings and the stock market as a whole, depending on the specification. Evidence exists of a deterioration of returns over time.

Keywords

Initial public offerings, Private equity, Exiting

Discipline

Finance and Financial Management | Portfolio and Security Analysis

Research Areas

Finance

Publication

Journal of Financial Economics

Volume

91

Issue

2

First Page

139

Last Page

157

ISSN

0304-405X

Identifier

10.1016/j.jfineco.2008.03.002

Publisher

Elsevier

Citation

CAO, Jerry and Lerner, Josh. The Performance of Reverse Leveraged Buyouts. (2009). Journal of Financial Economics. 91, (2), 139-157.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/1075

Copyright Owner and License

Authors

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.

Additional URL

https://doi.org/10.1016/j.jfineco.2008.03.002