The Performance of Reverse Leveraged Buyouts

43 Pages Posted: 16 Oct 2006 Last revised: 9 Oct 2019

See all articles by Josh Lerner

Josh Lerner

Harvard Business School - Finance Unit; Harvard University - Entrepreneurial Management Unit; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI); Harvard University - Private Capital Research Institute

Jerry Cao


Multiple version iconThere are 2 versions of this paper

Date Written: March 17, 2008


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 the three-year and five-year stock performance of these offerings. RLBOs appear to perform as well as or better than other initial public offerings and the stock market as a whole, depending on the specification. Evidence exists of a deterioration of returns over time.

Keywords: Initial Public Offerings; Private Equity; Exiting

JEL Classification: G10; G23

Suggested Citation

Lerner, Josh and Cao, Jerry, The Performance of Reverse Leveraged Buyouts (March 17, 2008). Journal of Financial Economics (JFE), Vol. 91, No. 2, 2009, Available at SSRN: or

Josh Lerner (Contact Author)

Harvard Business School - Finance Unit ( email )

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Harvard University - Entrepreneurial Management Unit

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National Bureau of Economic Research (NBER)

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Harvard University - Private Capital Research Institute ( email )

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Jerry Cao


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