The Performance of Reverse Leveraged Buyouts
43 Pages Posted: 16 Oct 2006 Last revised: 9 Oct 2019
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: Suggested Citation