Barrett

Barrett, The Honors College at Arizona State University proudly showcases the work of undergraduate honors students by sharing this collection exclusively with the ASU community.

Barrett accepts high performing, academically engaged undergraduate students and works with them in collaboration with all of the other academic units at Arizona State University. All Barrett students complete a thesis or creative project which is an opportunity to explore an intellectual interest and produce an original piece of scholarly research. The thesis or creative project is supervised and defended in front of a faculty committee. Students are able to engage with professors who are nationally recognized in their fields and committed to working with honors students. Completing a Barrett thesis or creative project is an opportunity for undergraduate honors students to contribute to the ASU academic community in a meaningful way.

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Leveraged Buyouts: An Examination of Modeling Techniques and Transaction Structures

Description
This thesis provides an in-depth comparison of the attractiveness of leveraged buyout (LBO) transactions under low versus high interest rates. In particular, our analysis focuses on how London Interbank Offered Rates (LIBOR) affect internal rates of return for hypothetical LBO transactions, assuming financing structure and operational enhancements for the individual…

This thesis provides an in-depth comparison of the attractiveness of leveraged buyout (LBO) transactions under low versus high interest rates. In particular, our analysis focuses on how London Interbank Offered Rates (LIBOR) affect internal rates of return for hypothetical LBO transactions, assuming financing structure and operational enhancements for the individual transactions are held constant. Given that LIBOR rates are currently at historically low levels, we model four hypothetical LBO transactions in the specialty retail space using both historically high and currently low LIBOR rates (for a total of eight model outputs). We quantify the extent to which high rates have the potential to decrease LBO value, while low rates may enhance value. Through this thesis, we have obtained a better understanding of LBO transaction modeling, an understanding that will make us more effective as professionals in investment banking. Finally, this thesis can serve as a step-by-step guide to LBOs for undergraduate finance students, particularly for members of the Investment Banking Industry Scholars (IBIS) program at Arizona State University.
ContributorsGormley, Sean (Co-author) / Hert, James (Co-author) / Coles, Jeffrey (Thesis director) / Bhattacharya, Anand (Committee member) / Barrett, The Honors College (Contributor) / Department of Economics (Contributor) / Department of Finance (Contributor) / School of Accountancy (Contributor)
Created2014-05