41 Pages Posted: 27 Aug 2014
Date Written: August 16, 2014
We examine cross-border private equity (PE) sponsored leveraged buyout (LBO) transactions in 43 countries in relation to creditor rights and other legal and institutional variables. Cross-border LBO investment is more common from strong creditor rights countries to weak creditor rights countries. Club deals are less common in countries with stronger creditor rights, and less common in cross-border LBOs. Premiums are lower in countries with stronger creditor rights, and among cross-border deals.
Keywords: LBOs, Creditor rights, Private Equity, Cross border, Club deal, Law and Finance
JEL Classification: G24, G32
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