Spelling suggestions: "subject:"leverage"" "subject:"leveraging""
41 |
Leveraged buyouts in Central Europe and beyond / Dluhove financovani transakci ve Stredni Evrope a dalHalás, Vladimír January 2007 (has links)
Paper concentrates on issues regarding Leveraged Buyout transactions. It briefly depicts most common structure of transactions and means of financing. Substantial space is dedicated to two main participants on leveraged buyouts; investment banks and private equity funds. Instead on focusing on thoroughly described financing of the acquisition via secured bank loans we dedicate space in the thesis to mezzanine finance and high yield bonds. Second part of the thesis analysis latest development in the two main and most active regions regarding mergers and acquisition activity (Europe and USA) and compares Central Europe with it. Although capital markets developed substantially over past decades they are still lagging significantly former.
|
42 |
What drives leverage in Swedish LBOs?Berglund, Felicia, Mähler, Billy January 2023 (has links)
The capital structure of leveraged buyout (LBO) companies often differs dramatically from that of other companies. What factors drive the amount of leverage in LBO transactions are often contrasted by two different views in previous research. The first view, based on the trade-off theory and the pecking order theory, states that leverage is driven by traditional firm characteristics. The second view, based on the market timing theory, instead states that leverage in LBOs foremost is driven by whether or not conditions in the credit market are favorable. Previous research that has investigated LBO companies' leverage in particular has voiced concerns that the first view that stems from classic capital structure theories may not be completely applicable on LBO companies. The purpose of this paper is to examine what drives leverage in Swedish LBOs between the years of 2001 and 2021. To do this, a univariate analysis has been conducted to investigate patterns in leverage in different states of the credit market. Furthermore, an econometric approach was taken in a multivariate analysis to analyze which factors drive leverage in Swedish LBOs. The results contradict previous LBO research to some extent as leverage in Swedish LBOs is not driven by credit market conditions nor firm specific characteristics, except for tangibility which has a positive impact on leverage in one setting.
|
43 |
La flexibilización de la prohibición de la asistencia financiera: Un análisis del artículo 106 de la Ley General de SociedadesChavesta Cornejo, Ausby Stewart January 2024 (has links)
Hoy en día, el Perú es un país que se influencia mucho de países internacionales, generando así necesidades de adaptación principalmente en el derecho societario, sin embargo, a la luz de la actualidad, se siguen verificando trabas respecto a las normas prohibitivas que, de alguna forma u otra, traban operaciones que en otros países se han podido flexibilizar. Una de las normas que da lugar al presente estudio de investigación es la figura denominada asistencia financiera prohibida, regulada en el artículo 106 de la Ley General de Sociedades, figura que en toda su trayectoria se ha restringido de una manera poco razonable. El propósito de este estudio es evaluar los fundamentos legales que permitan la flexibilización de las disposiciones sobre la asistencia financiera contenidas en el artículo 106 de la Ley General de Sociedades, en atención al Leveraged Buyout. Para lograr los resultados de nuestra investigación, se trazó dos objetivos: analizar el marco jurídico nacional de la asistencia financiera regulado en el art 106 de la Ley General de Sociedades y su tratamiento en el derecho comparado y analizar los fundamentos legales vinculada a la asistencia financiera, en atención al Leveraged buyout. En relación al primer punto, se llega a una probabilidad alta de certeza que su presencia carece de justificación, ya que se orienta hacia propósitos innecesarios o, en caso de atender a necesidades legítimas, lo hace de forma poco lógica. Respecto al segundo punto, tenemos una certeza absoluta que lamentable la regulación actual es restrictiva limitando numerosas estructuras de adquisición de acciones más de lo que una amplia gama de doctrinarios en la materia y juristas desearían reconocer. / Today, Peru is a country highly influenced by international nations, thereby generating adaptation needs primarily in corporate law. However, in light of the present situation, obstacles persist regarding prohibitive regulations that, in one way or another, hinder operations that have been able to be streamlined in other countries. One of the regulations that gives rise to this research study is the so-called prohibited financial assistance, regulated in Article 106 of the General Law of Companies, a provision that throughout its history has been unreasonably restricted. The purpose of this study is to evaluate the legal foundations that allow for the flexibility of the provisions on financial assistance contained in Article 106 of the General Companies Law, in relation to Leveraged Buyouts. To achieve the results of our research, two objectives were outlined: to analyze the national legal framework of financial assistance regulated in Article 106 of the General Law of Companies and its treatment in comparative law, and to examine the legal foundations related to financial assistance, in relation to Leveraged Buyouts. In relation to the first point, it is highly likely that its presence lacks justification, as it is geared towards unnecessary purposes or, if it addresses legitimate needs, it does so in a somewhat illogical manner. Regarding the second point, we have absolute certainty that the current regulation is regrettably restrictive, limiting numerous structures for share acquisition more than what a wide range of scholars in the field and legal practitioners would wish to acknowledge.
|
44 |
Hur investmentbolag påverkar kapitalstrukturen i sina innehav : En fallstudie av RatosAsplund, Johan, Norrman, Henrik, Rodger, Therese January 2017 (has links)
Examensarbete i foretagsekonomi, Ekonomihögskolan vid Linnéuniversitetet, 2FE93E, VT 2017 Författare Johan Asplund, Henrik Norrman och Therese Rodger Handledare Andreas Stephan Titel Hur investmentbolag paverkar kapitalstrukturen i sina innehav - En fallstudie av Ratos Bakgrund Bolags kapitalstruktur, fördelningen mellan bolagets tillgångar och skulder, visar hur bolaget finansierar sin verksamhet. Private Equity bolag lånar kapital för att kunna investera i nya uppköp av onoterade bolag och har ofta en begränsad planerad ägarhorisont. Kapitalstruktur har undersökts under lång tid men inte hur en majoritetsägare påverkar kapitalstrukturen i sina andelsbolag. Tidigare studier fokuserar pa exempelvis kapitalstrukturer i industriföretag eller kapitalstrukturer i småforetag. Syfte Syftet med studien ar att analysera om ett investmentbolag påverkar kapitalstrukturen i sina innehavsbolag nar de genom uppköp har gått in som en majoritetsägare i dessa bolag och vilka effekter förändringen kan leda till. Metod Studien utgår från en kvantitativ ansats där finansiella nyckeltal av Ratos innehavsbolag undersöks före och efter det att Ratos gått in som majoritetsagare i bolaget. Dessa nyckeltal jämförs sedan med branschspecifika nyckeltal genererade från SCB. Resultat I studien återfinns inget entydigt bevis på att vårt valda Private Equity bolag, Ratos, ändrar kapitalstrukturen väsentligt på något sätt efter att ha gått in som majoritetsägare i ett bolag. / A company’s choice of capital structure is a well documented field in financial research but no unambiguous results are available regarding how the company is best financed or what actually defines the optimal capital structure for a company. The purpose of this study is to examine the possible changes on a company’s capital structure once a Private Equity company has become the majority owner. In this study a deductive approach has been used and a quantitative survey has been applied. Financial ratios from yearly reports of companies before and after the Swedish Private Equity company Ratos became the majority owner have been analysed and compared with the hypothesis that a Private Equity majority owner would significantly change the capital structure of the acquired company. The selection criteria for the companies was that Ratos should own more than 50 % of the company in order to actually have an impact on how the company is financed, in addition the selected companies needed to have data available in the form of yearly reports both prior to Ratos becoming the majority owner and at least two years afterwards in order to study the eventual changes of the take over. Financial ratios such as debt to equity ratio, leverage and return on equity were then calculated and results analysed. Theories of capital structure such as the Trade off theory, Pecking order theory, Miller and Modigliani and the Agency theory have also been applied to analyse the outcome. The method of comparison used was the differencein-difference method with data from Statistics Sweden (SCB) from similar relevant companies. The results of this study do not indicate that the capital structure of the company changes significantly within the first two years after acquisition by the majority owner Ratos. Suggestions for further studies would be to analyse a wider group of Private Equity companies as majority owners and observe eventual changes in capital structure in takeovers.
|
45 |
A Study of the Characteristics of Firms Undergoing Leveraged Buyouts in Europe / En studie av egenskaperna hos de bolag som genomgår leveraged buyouts i EuropaELMBERGER, HENNING, MALLY, FABIAN January 2018 (has links)
In this thesis we examine the shared characteristics of companies that undergo leveraged buyouts from public markets in Europe between 2005-2015 and whether credit markets have an impact on these characteristics. This is done by conducting logistical regressions on public data and through interviews with industry professionals. Our results indicate that companies that undergo leveraged buyouts from public markets have low financial liquidity and are undervalued, while high free cash flow, potential tax savings and pre-acquisition debt levels were found to be insignificant. Credit markets are found to have a profound effect on the characteristics that are sought after by private equity firms, as the statistical analysis give different significant variables depending on the state of the credit market, which is in line with the interview results. In good credit markets, potential financial distress costs are higher for bought out companies than the control group, while in bad credit markets a strong growth potential and undervaluation are the significant characteristics. The interviews also showed that investment professionals focus more on qualitative aspects, e.g. competitive advantage, when evaluating an investment opportunity, while the financial characteristics play a subdued role / I denna uppsats undersöker vi de delade karaktäristika hos företag som genomgår leveraged buyouts från de publika marknaderna i Europa mellan år 2005 och 2015, och huruvida dessa gemensamma drag skiljer sig åt beroende på tillståndet på kreditmarknaden. För att göra detta genomförs logistiska regressioner på publik data och intervjuer med industrierfarna. Våra resultat indikerar att företag som genomgår leveraged buyouts från publika marknader har låg finansiell likviditet och är undervärderade, medan höga kassaflöden, potentiella skattebesparingar och skuldnivåer inte särskiljer dem. Kreditmarknader visar sig ha en stor effekt på de karaktäristika som sökes av riskkapitalbolag, då den statistiska analysen ger olika signifikanta variabler beroende på tillståndet på kreditmarknader. Detta styrks också av intervjusvar. I goda kreditmarknader är potentiella kostnader av finansiella problem (financial distress) högre för de företag som köps upp än för kontrollgruppen. I dåliga kreditmarknader är en god tillväxtpotential och undervärdering särskiljande för de bolag som blir uppköpta. Intervjuerna visade också att investerare fokuserar mer på kvalitativa aspekter, såsom konkurrensfördelar, när de utvärderar en investeringsmöjlighet, medan finansiella karaktäristika är faktorer de utvärderar i andra hand.
|
46 |
Stochastic models for asset pricing in corporate financeStimper (mar. Hacker), Franziska 30 May 2024 (has links)
This paper-based dissertation discusses applications of asset pricing using the methodology of stochastic modelling for different questions in corporate finance and comprises three essays. The first essay reconsiders the pricing of a firm by more appropriately quantifying one component of the APV equation, i.e., the tax savings. This study proposes a state dependent taxation of a cancellation of indebtedness (COD), reflecting the diverse national tax systems more realistically and investigates whether this has an impact on the value of a leveraged firm. The second essay quantifies the performance measure of a leveraged buyout (LBO) and facilitates the optimization of this figure by searching for an optimal redemption policy within the firm’s financial structure. Further evidence is brought to the often-discussed consideration between the internal rate of return (IRR) and the net present value (NPV) as investment decision criteria. The third and last essay prices a common clause in mergers and acquisitions (M&A) transactions – the earnout - by revisiting a prominent assumption about the payoff modeling in standard corporate finance literature. While current literature on pricing contingent claims mainly relies on the standard Black-Scholes-Merton framework, this study investigates whether a more realistic modelling by introducing stochastic jumps into the EBIT of firm earnout clauses to be mispriced under standard models.
|
47 |
The different phases of the leveraged buyout of the Cognis group'Bolz, Steffen 12 1900 (has links)
Thesis (MBA)--Stellenbosch University, 2005. / ENGLISH ABSTRACT: This study project explains the theory of Leveraged-Buy-Outs and describes the
different financial tools than can be used. Special emphasis is laid in the capital
structure of a Leveraged-Buy-Out and its impact on the return for the investor.
The theory is then put in perspective by giving insight in the case study of the
Cognis Group, a speciality chemicals company, based in Germany. It was sold to
Private Equity companies in 2001 and since then underwent various refinancing
including the issuing of High Yield Bonds and the issuing of Payment-In-KindNotes. / AFRIKAANSE OPSOMMING: Die teorie rakende gehefboomde bestuuroornames en die gebruik van
verskillende finansiele instrumente by bestuursoornames word in hierdie
werkstuk beskryf. Klem word gelê op die impak wat 'n verandering in die
kapitaalstruktuur van die maatskappy op die belegger kan hê as gevolg van 'n
gehefboomde bestuursoorname.
Die teorie word toegelig deur te vervvys na die Cognis Groep maatskappye in
Duitsland as gevallestudie. Die maatskappy het 'n bestuursoorname ondergaan
in 2001 asook verskeie veranderinge in die kapitaalstruktuur daarna waar onder
andere gebruik gemaak was van lae gehalte effekte.
|
48 |
Private equity - leveraged buyouts a KKR / Private equity - leveraged buyouts and KKRHaško, Miroslav January 2010 (has links)
The aim of this thesis is description and understanding of private equity industry as a part of alternative asset class. In the first part, we describe the basic concepts of private equity industry and characteristics of individual subjects present in this sector. Analysis of the industry and basic comparison of private equity in Europe and United States is the theme of the second part of this paper. The base of knowledge created in the previous parts supports the analysis of buyouts and their value creation strategies. On the example of Kohlberg Kravis Roberts, pre-eminent private equity firm, we show how private equity works in practice and what current trends in the industry are. In the end, we estimate the subjective value of one unit of ownership in KKR and list that risks could affect the company and the industry.
|
49 |
What determines leverage in leveraged buyouts? : A study of debt levels in European LBOsGille, Evelina, Karlsson, Josefine January 2019 (has links)
This paper examines the main drivers of leverage levels in private equity-sponsored leveraged buyouts (LBOs). In order to find out what drives LBO leverage, we analyse deal financing of 71 European LBO deals completed between 2005 and 2015. By conducting univariate t-test and multiple regression analysis, we analyse the predictive power of a number of classical capital structure determinants (i.e. firm-specific factors) on levels of debt financing in LBOs. In addition, the state of the credit market is considered as a potential determinant of LBO leverage. We find that credit market conditions have a significant effect on levels of debt financing in LBOs and suggest that the market timing theory can explain LBO leverage better than classical leverage determinants, i.e. firm specific factors derived from classical capital structure theories. The results also indicate a negative relationship between target firms’ tax rate and LBO leverage. We also find that target firms’ free cash flow prior to buyout has no significant impact on leverage in LBOs, something that contradicts much previous research.
|
50 |
Three Essays in Corporate Finance and Institutional InvestorsHuang, Jiekun January 2009 (has links)
Thesis advisor: Thomas J. Chemmanur / My Ph.D. dissertation consists of three essays. The first essay examines the effect of hedge funds on target shareholder gains in leveraged buyouts (LBOs). I find that the initial buyout premium is increasing in the preannouncement presence of hedge funds, measured as the fraction of target equity held by hedge funds before the announcement. Using a geographic instrument for the presence of hedge fund, I find that this relationship persists even after controlling for endogeneity. I further show that this effect holds only for active hedge funds and long-term hedge funds, and is stronger for management-led LBOs than for third-party LBOs. Overall, the findings suggest that hedge funds protect target shareholder interests in LBOs by using their hold-out power. The second essay examines the relation between expected market volatility and the demand for liquidity in open-end mutual funds. The empirical results are consistent with precautionary motives for holding liquid assets, i.e., fund managers tilt their holdings more heavily toward liquid stocks when the market is expected to be more volatile. This dynamic preference for liquid stocks is more pronounced among small fund families, low-load funds, funds whose past performance has been unfavorable, funds with high return volatility, growth-oriented funds, and high-turnover funds. I further show that this type of behavior is valuable for fund investors during high volatility periods because it has led to significantly (both statistically and economically) higher subsequent abnormal returns. The third essay, co-authored with Thomas Chemmanur and Gang Hu, directly tests Brennan and Hughes' (1991) information production theory of stock splits by making use of a large sample of transaction-level institutional trading data. We compare brokerage commissions paid by institutional investors before and after a split, and relate the informativeness of institutional trading to brokerage commissions paid. We also compute realized institutional trading profitability net of brokerage commissions and other trading costs. Our results can be summarized as follows. First, both commissions paid and trading volume by institutional investors increase after a stock split. Second, institutional trading immediately after a split has predictive power for the firm's subsequent long-term stock return performance; this predictive power is concentrated in stocks which generate higher commission revenues for brokerage firms and is greater for institutions that pay higher brokerage commissions. Third, institutions make positive abnormal profits during the post-split period even after taking brokerage commissions and other trading costs into account; institutions paying higher commissions significantly outperform those paying lower commissions. Fourth, the information asymmetry faced by firms decreases after a split; the greater the increase in brokerage commissions after a split, the greater the reduction in information asymmetry. Overall, our results are broadly consistent with the implications of the information production theory. / Thesis (PhD) — Boston College, 2009. / Submitted to: Boston College. Carroll School of Management. / Discipline: Finance.
|
Page generated in 0.0519 seconds