Leveraged Buyouts in the U.K. and Continental Europe: Retrospect and Prospect
AbstractThe markets for management buyouts in the U.K. and continental Europe have experienced dramatic growth in the past ten years. In the U.K., buyouts accounted for half of the total M&A activity (measured by value) in 2005. And as in the U.S. during the'80s, the greatest number of U.K. buyouts in recent years have been management- and investor-led acquisitions of divisions of large corporations. In continental Europe, by contrast, the largest fraction of deals has involved the purchase of family-owned private businesses. But in recent years, increased pressure for shareholder value in countries like France, Netherlands, and even Germany has led to a growing number of buyouts of divisions of listed companies. Like the U.K., continental Europe has also seen a small but growing number of purchases of entire public companies (known as private-to-public transactions, or PTPs), including the largest ever buyout in Europe, the â¬13 billion purchase this year of the Danish corporation TDC. 2006 Morgan Stanley.
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2006-70.
Date of creation: 2006
Date of revision:
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Public-to-private; going private; LBO; MBO; IBO; Management buy-ins; Management buyouts; Leveraged buyouts;
Other versions of this item:
- Mike Wright & Luc Renneboog & Tomas Simons & Louise Scholes, 2006. "Leveraged Buyouts in the U.K. and Continental Europe: Retrospect and Prospect," Journal of Applied Corporate Finance, Morgan Stanley, vol. 18(3), pages 38-55.
- Wright, M. & Renneboog, L.D.R. & Simons, T. & Scholes, L., 2006. "Leveraged Buyouts in the U.K. and Continental Europe: Retrospect and Prospect," Discussion Paper 2006-022, Tilburg University, Tilburg Law and Economic Center.
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-09-16 (All new papers)
- NEP-CFN-2006-09-16 (Corporate Finance)
- NEP-EEC-2006-09-16 (European Economics)
- NEP-FIN-2006-09-16 (Finance)
- NEP-FMK-2006-09-16 (Financial Markets)
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