The Performance of Reverse Leveraged Buyouts
Singapore Management University - Lee Kong Chian School of Business
Harvard Business School - Finance Unit; Harvard University - Entrepreneurial Management Unit; National Bureau of Economic Research (NBER)
October 15, 2006
Swedish Institute for Financial Research Conference on The Economics of the Private Equity Market
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 three- and five-year stock performance of these offerings. RLBOs appear to perform as well as or better than other IPOs and the stock market as a whole, depending on the specification. There is evidence of a deterioration of returns over time.
Number of Pages in PDF File: 48
Keywords: RLBO, IPO, Private Equity, Long-run performance
JEL Classification: G10, G23, G34
Date posted: October 16, 2006
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