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=LBO Traits/Incidence/Phenomena Papers=
===Nadant and Perdreau 2006===
@article{le2006financial,
title={Financial profile of leveraged buy-out targets: some French evidence},
author={Le Nadant, Anne-Laure and Perdreau, Fr{\'e}d{\'e}ric},
journal={Review of Accounting and Finance},
volume={5},
number={4},
pages={370--392},
year={2006},
publisher={Emerald Group Publishing Limited},
abstract={: This paper investigates whether firms, which are taken over on the French market through Leveraged Buyouts (LBOs), possess characteristics prior to the change which differentiate them from firms which are not acquired through LBOs. Contrasting 175 LBO targets on the French market with an industry-matched comparison group, we first run univariate analysis and then multivariate analysis(logit regression). Beyond the underscoring of the LBO targets‟ financial features, we conclude that subdividing our sample according to the vendor and bidder type is beneficial. We thus notice that the so-called outperformance of LBO targets prior to the deal hides in fact different cases.}
filename={Nadant and Perdreau (2006) - Financial Profile of Leveraged Buyout Targets Some French Evidence}
}
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:
List of deals collected from Zephyr database of the BvD Suite for mid 1997 to 2002 and from the french review Capital Finance for the first semester 1997 and for the year 1996. 175 deals
Variables:
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)
=Innovation Factors/Phenomena Papers=
