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Essays On Reverse Leveraged Buy-Outs, Mark Richard Gruskin
Essays On Reverse Leveraged Buy-Outs, Mark Richard Gruskin
Wayne State University Dissertations
ABSTRACT
ESSAYS ON REVERSE LEVERAGED BUYOUTS
by
MARK GRUSKIN
August 2011
Advisor: Dr. Sudip Datta
Major: Business Administration (Finance)
Degree: Doctor of Philosophy
This dissertation is the first study to investigate public-to-private reverse leveraged buyouts (RLBOs). The first essay measures changes in profitability, financial structure, operations, and cost structure to detect actions taken during the private period. Results show that approaching the leveraged buyout there is an above industry level of free cash flow and capital expenditures, while growth options are at competitive levels. These factors in the presence of low ownership concentration suggest the existence of overinvestment.
Increased leverage …