48 Pages Posted: 16 Oct 2006
Date Written: October 15, 2006
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: 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
By Jerry Cao