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Public-to-Private Transactions : LBOs, MBOs, MBIs and IBOs

Listed author(s):
  • Renneboog, L.D.R.

    (Tilburg University, TILEC)

  • Simons, T.

This paper shows that a vibrant and economically important public-to-private market has reemerged in the US, UK and Continental Europe, since the second half of the 1990s.The paper shows recent trends and investigates the motives for public-to-private and LBO transactions.The reasons for the potential sources of shareholder wealth effects during the transaction period are examined: a distinction is made between tax benefits, incentive realignment, transaction costs savings, stakeholder expropriation, takeover defenses and corporate undervaluation.The paper also attempts to relate these value drivers to the post-transaction value and to the duration of the private status.Finally, the paper draws some conclusions about whether or not public-to-private transactions are useful devices for corporate restructuring.

(This abstract was borrowed from another version of this item.)

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File URL: https://pure.uvt.nl/portal/files/775997/2005-023.pdf
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Paper provided by Tilburg University, Tilburg Law and Economic Center in its series Discussion Paper with number 2005-023.

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Date of creation: 2005
Handle: RePEc:tiu:tiutil:3b76799c-591c-4d22-b126-a96e55578a42
Contact details of provider: Web page: https://www.tilburguniversity.edu/research/institutes-and-research-groups/center-ar/

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