Employee Views of Leveraged Buy-Out Transactions
65 Pages Posted: 20 Sep 2021 Last revised: 15 Nov 2021
Date Written: June 1, 2021
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: Suggested Citation