Topic

Leveraged Buyouts

Debt-financed private acquisitions of public companies, where the target's share price sets the feasibility ceiling.

Current clusters

Twenty years of French buyout data link pay compression to workforce turnover after buyouts

A Journal of Finance study of 813 French targets and 76,331 matched controls finds the within-firm 90/10 pay ratio falls 3 percent after a buyout, arriving there by swapping expensive managers for cheaper ones.

Publishers:corpgov.law.harvard.edu

Reality

Evidence62
Adoption: Insufficient
Hype gap+8
Incentives45
Confidence58

product1 publisher

A 40 percent rally in PayPal shares ends Stripe's $53 billion buyout attempt

Bloomberg reports that Stripe and Advent have dropped an offer that only worked while PayPal traded at historic lows, which leaves merchants integrating against two independent payment stacks rather than one.

Publishers:engadget.com

Reality

Evidence28
Adoption: Insufficient
Hype gap+26
Incentives72
Confidence48