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→Nadant and Perdreau 2006
filename={Nadant and Perdreau (2006) - Financial Profile of Leveraged Buyout Targets Some French Evidence}
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Confirms LBO targets are less indebted and possess relatively more liquid assets than their industry counterparts. Contrary to former findings, LBO's business risk also seems to be higher than for non-LBO firms prior to the deal. Also corroborates or disagrees with some dozen other hypotheses.
Data:
Variables:
Activity and performance
*“Free cash flows” (1) divided by turnover
*Turnover growth
*Income tax divided by turnover
Business Risk
*Coefficient of variation of turnover growth computed on the 3 yearperiod preceding the deal
*Coefficient of variation of ROIC computed on the 3 year-period preceding the deal
*Coefficient of variation of ROE computed on the 3 year-period preceding the deal
*Coefficient of variation of FCF/turnover computed on the 3 yearperiod preceding the deal
Composition and characteristics of assets and financial structure
*Tangible assets (net) divided by total assets (net)
*Return On Invested Capital = (operating income before taxes + interest expenses) divided by “economic assets” (WCR + fixed Assets (net))
*Return On Equity = Net income divided by (stockholders equity - net income)
*Total debt divided by stockholders equity
*Retained earnings/Total assets
*Net cash/Total assets
*Working Capital Requirement divided by turnover
*Financial assets (net)/Total Assets (net)
*Total Assets (net)/Total assets (gross)
===Nadant and Perdreau 2015===
