15Oct 2016

IMPACT OF LEVERAGE BUYOUTS (LBO’S) ON THE SHARE PRICES OF THE ACQUIRING COMPANIES.

  • Asst. Professor, Amity University, Madhya Pradesh.
  • Director, Amity Business School, Amity University, Madhya Pradesh.
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A leveraged buyout (LBO) is a transaction when a company or single asset is purchased with a combination of equity and significant amounts of borrowed money, structured in such a way that the target's cash flows or assets are used as the collateral (or "leverage") to secure and repay the borrowed money. In the changing scenario, leverage buyouts have been very common in India also. I have analyzed the impact of buyouts on the acquiring companies using abnormal returns and correlation method which gave positive results.


[Naresh Kedia and Anil Vashisht. (2016); IMPACT OF LEVERAGE BUYOUTS (LBO’S) ON THE SHARE PRICES OF THE ACQUIRING COMPANIES. Int. J. of Adv. Res. 4 (Oct). 431-436] (ISSN 2320-5407). www.journalijar.com


NARESH KEDIA


DOI:


Article DOI: 10.21474/IJAR01/1810      
DOI URL: http://dx.doi.org/10.21474/IJAR01/1810