Title

The Performance of Reverse Leveraged Buyouts

Publication Type

Journal Article

Publication Date

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.

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