Austerity & Excess: Leveraged Buyouts in the 1980s

Topics:
Commercial Banking,
Investment and Capital Markets
Tags:
Branding,
Research & Development,
Mergers & Acquisitions,
Marketing,
LBO,
Investment,
Financial Services,
Finance,
Corporate Law,
Corporate Governance,
...
Source:
University of Florida

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Overview: This paper glosses over the pitfalls of leveraged buyouts to focus on the austerity they reintroduced to corporate governance and the excesses of the dealmakers. Highly levered companies are ill suited to weather economic downturns - not an inconsequential part of the late 1980s transactions' default rate. The harsh cost cutting endured by these companies emphasizes the relatively short- to intermediate-term horizon. This can be debilitating in industries requiring heavy research and development budgets or long-term brand management.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 77KB | Date: Nov 2001 | Pages: 14


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