The Performance of Leveraged Buyout-Backed Initial Public Offerings in the UK
49 Pages Posted: 7 Apr 2008
Abstract
This paper investigates the long-term stock price performance of initial public offering (IPO) firms in the United Kingdom that were previously owned by leveraged buyout (LBO) funds. A sample of 128 LBO-backed IPOs and 1,121 non-LBO-backed IPOs between 1990 and 2006 is analysed for the long-term performance of these offerings. The analysis suggests that LBO-backed IPOs beat the stock market and outperform non-LBO-backed IPOs. The analysis identifies factors driving outperformance, most significantly the percentage of share capital held by the buyout group after the offering.
Keywords: initial public offerings (IPOs), private equity, leveraged buyouts (LBOs), reverse leveraged buyouts (RBLOs), stock price performance, long-term event study, United Kingdom (UK)
JEL Classification: G12, G14, G15, G24
Suggested Citation: Suggested Citation
Here is the Coronavirus
related research on SSRN
Recommended Papers
-
Conflict of Interest in the Issuance of Public Securities: Evidence from Venture Capital
By Paul A. Gompers and Josh Lerner
-
By Paul A. Gompers and Josh Lerner
-
By Yasushi Hamao, Jay R. Ritter, ...
-
The Performance of Reverse Leveraged Buyouts
By Josh Lerner and Jerry Cao
-
The Performance of Reverse Leveraged Buyouts
By Jerry Cao and Josh Lerner
-
Competition and Coalition Among Underwriters: The Decision to Join a Syndicate
-
Earnings Management and Stock Performance of Reverse Leveraged Buyouts
By De-wai Chou, Michael Gombola, ...
