Employee Views of Leveraged Buy-Out Transactions

65 Pages Posted: 20 Sep 2021 Last revised: 22 Sep 2021

See all articles by Marie Lambert

Marie Lambert

HEC Liège, Management School of the University of Liège

Nicolas Moreno

HEC Liège, Management School of the University of Liège

Ludovic Phalippou

University of Oxford - Said Business School

Alexandre Scivoletto

HEC Liège, Management School of the University of Liège

Date Written: September 18, 2021

Abstract

A large sample of employee reviews shows a decline in satisfaction after a Leveraged Buy-Out (LBO), but with significant heterogeneity. The key driver is the previous ownership structure. For Private-to-Private transactions, dissatisfaction is concentrated in non-management employees and comes mostly from how management treats them. In Public-to-Private transactions, the dissatisfaction is stronger, multi-faceted, and present for all employees, including management. Industry and Private Equity sponsor fixed effects are significant, but second order. Other ownership changes (M&A, IPO) trigger less dissatisfaction.

Keywords: ESG, big data, crowdsourcing, private equity, buyout, mergers & acquisitions

JEL Classification: G30, G34, G28, G50, I31, J21, J24, J31, J32

Suggested Citation

Lambert, Marie and Moreno, Nicolas and Phalippou, Ludovic and Scivoletto, Alexandre, Employee Views of Leveraged Buy-Out Transactions (September 18, 2021). Available at SSRN: https://ssrn.com/abstract=3926300 or http://dx.doi.org/10.2139/ssrn.3926300

Marie Lambert (Contact Author)

HEC Liège, Management School of the University of Liège ( email )

rue Louvrex 14
Liège, 4000
Belgium

Nicolas Moreno

HEC Liège, Management School of the University of Liège ( email )

Boulevard du Rectorat 7 (B31)
LIEGE, Liege 4000
Belgium

Ludovic Phalippou

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

Alexandre Scivoletto

HEC Liège, Management School of the University of Liège ( email )

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
211
Abstract Views
783
rank
181,440
PlumX Metrics