Title: Leveraged Buyouts and Private Equity Financing (Congoleum)
Abstract: The focus here in on understanding what leveraged buyouts are, which today occur under the mantel of what is called private equity financing. The example of the buyout of Congoleum Corporation is used as it is the template for many of today's private equity takeovers. First is a short history of Congoleum and its stakeholders. The question of what makes a firm a good LBO target is explored. The details of the Congoleum deal is discussed in full, including financing, lender interests, risk, value creation, pro formas, and equity returns. A look at what happened to Congoleum after the LBO is covered. Finally, there is a look at what happened to LBOs going forward as a result of Congoleum's LBO. What makes a good LBO candidate? The three essential requirements are low debt, good cash flow, and capable management.
Publication Year: 2016
Publication Date: 2016-03-18
Language: en
Type: other
Indexed In: ['crossref']
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Cited By Count: 1
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