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→Compustat
==LBO==
===Compustat===
Activity and performance:
*FCF/TR “Free cash flows” (1) divided by turnover
*TRGR Turnover growth
*Tax/TR Income tax divided by turnover
*ROIC Return On Invested Capital = (operating income before taxes + interest expenses) divided by “economic assets” (WCR + fixed Assets (net))
*ROE Return On Equity = Net income divided by (stockholders equity - net income)
Business Risk:
*CVTRGR Coefficient of variation of turnover growth computed on the 3 yearperiod preceding the deal
*CVROIC Coefficient of variation of ROIC computed on the 3 year-period preceding the deal
*CVROE Coefficient of variation of ROE computed on the 3 year-period preceding the deal
*CVFCF/TR Coefficient of variation of FCF/turnover computed on the 3 yearperiod preceding the deal
Composition and characteristics of assets and financial structure:
*TanA/TA Tangible assets (net) divided by total assets (net)
*LEV Total debt divided by stockholders equity
*RET/TA Retained earnings/Total assets
*NC/TA Net cash/Total assets
*WCR/TR Working Capital Requirement divided by turnover
*FA/TA Financial assets (net)/Total Assets (net)
*TA/TAg Total Assets (net)/Total assets (gross)
Variables:
*Target-firm size (SIZE)
*Target-firm liquidity (LIQUIDITY)
*Asset sales subsequent to the lbo (ASSETSALE)
*Target-firm return on assets (ROA)
*Target-firm growth opportunities (GROWTH and MRKTBOOK)
*target-firm earnings variability (EARNINGVAR)
*free cash flow ratio (FREECASH)
*acquisition premium paid (PREMIUM)
*trend variable (TIMEDUM)
Dependent variables:
*PBANKL the percentage of the total buyout financing package that is represented by senior bank debt
*PDEBTSEC: the percentage of the total package that consists of issues of junior debt securities
*PPREFER: the percentage of the total package represented by issues of preferred stock
*PCOMMON: the percentage of the total that consists of common equity provided by the buyout group
*PCASH: the percentage of the total that comes from the use of the target firm's existing cash and marketable securities balances
*CF = INC-TAX-INTEXP-PFDDIV-COMDIV
*CF/EQUITY
*Lagged SALESGR
*TAX/EQUITY
===non-Compustat===
