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The Impacts of LBOs on the Performance of Acquired Firms:the French Case

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  • Philippe Desbrières

    ()
    (Université de Bourgogne LATEC/FARGO)

  • Alain Schatt

Abstract

This paper investigates the financial characteristics and changes in performance of French companies involved in a leveraged buy-out. The empirical study covers a sample of 161 MBOs in France from 1988 to 1994. The acquired firms outperform their counterparts in the same sector of activity before and after the buy-out. However, unlike findings concerning LBOs in the USA and the UK, the performance of French firms falls after the operation is completed. This downturn in performance seems to be less detrimental to former subsidiaries of groups than to former family businesses.

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Bibliographic Info

Paper provided by Université de Bourgogne - CREGO EA7317 Centre de recherches en gestion des organisations in its series Working Papers CREGO with number 1020702.

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Length: 33 pages
Date of creation: Jul 2002
Date of revision:
Publication status: published in Journal of Business, Finance and Accounting, vol.29, n°5, juin-juillet 2002, p.695-729.
Handle: RePEc:dij:wpfarg:1020702

Note: article publié dans Journal of Business, Finance and Accounting, vol.29, n°5, juin-juillet 2002, p.695-729.
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Postal: 2 Bd Gabriel, BP 26611, 21066 Dijon Cedex, France

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Postal: Angèle Renaud, CREGO, 2 Bd Gabriel, BP 26611, 21066 Dijon Cedex, France
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Keywords: leveraged buy-out; performance; French LBO; family businesses; group subsidiaries.;

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References

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