The Performance of Reverse Leveraged Buyouts

48 Pages Posted: 16 Oct 2006  

Jerry Cao

Independent

Josh Lerner

Harvard Business School - Finance Unit; Harvard University - Entrepreneurial Management Unit; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: October 15, 2006

Abstract

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.

Keywords: RLBO, IPO, Private Equity, Long-run performance

JEL Classification: G10, G23, G34

Suggested Citation

Cao, Jerry and Lerner, Josh, The Performance of Reverse Leveraged Buyouts (October 15, 2006). Swedish Institute for Financial Research Conference on The Economics of the Private Equity Market. Available at SSRN: https://ssrn.com/abstract=937801 or http://dx.doi.org/10.2139/ssrn.937801

Jerry Cao (Contact Author)

Independent

No Address Available

Josh Lerner

Harvard Business School - Finance Unit ( email )

Boston, MA 02163
United States
617-495-6065 (Phone)
617-496-7357 (Fax)

HOME PAGE: http://www.people.hbs.edu/jlerner/

Harvard University - Entrepreneurial Management Unit

Cambridge, MA 02163
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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