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Title
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 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.
Date Created
2014-05
Contributors
- Gormley, 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)
Topical Subject
Resource Type
Extent
152 pages
Language
Copyright Statement
In Copyright
Primary Member of
Series
Academic Year 2013-2014
Handle
https://hdl.handle.net/2286/R.I.23173
Level of coding
minimal
Cataloging Standards
System Created
- 2017-10-30 02:50:57
System Modified
- 2021-08-11 04:09:57
- 2 years 8 months ago
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