Larcker, 1996, "The Financial Performance of Reverse Leveraged Buyouts," Journal of Financial Economics 42, 293-332.
Rosenfeld, 1993, "Takeover Activity and the Long-Run Performance of Reverse Leveraged Buyouts," Financial Management 22, 46-57.
We document the different types of restructuring activities undertaken during the private period after the reverse leveraged buyout (RLBO) of previously public firms.
Over the past four decades, private firms going public through a reverse leveraged buyout (RLBO) transaction have increased in frequency and importance.
The financial performance of reverse leveraged buyouts
. Journal of Financial Economics, 42, 293-332.
Much of the finance literature on IPOs focuses on the long-and short-term performance of IPOs and the hot and cold markets phenomenon.(5) However, an interesting branch of IPO-related research deals with reverse leveraged buyouts. This has emerged out of the work of Muscarella and Vetsuypens (1990), DeGeorge and Zeckhauser (1993), and Mian and Rosenfeld (1993).
Takeover activity and the long-run performance of reverse leveraged buyouts. Financial Management, 22(4), 46-57.
Reverse leveraged buyout firms are firms that were public, then went private through an LBO, and subsequently underwent an IPO.
Larcker, "The Financial Performance of Reverse Leveraged Buyouts," Working Paper, University of Pennsylvania, April 1993.
A reverse leveraged buyout occurs when either a publicly traded firm or a division within one converts to private ownership via a leveraged buyout (LBO) and subsequently goes public.
However, if the investment behavior of reverse LBOs was similar to that of a typical IPO, as reported by Ritter, then part of the premium paid by investors at the time of the reverse leveraged buyout could be due to overpricing.