Abstract: Leveraged buyouts are the amazing process of using other people's money to take control of a company! You can easily parlay a very modest investment into a very large enterprise if you know what you're doing--and your timing is right. For example, in the 1980s, financial sponsors have been able to finance LBOs by contributing a modest investment of 10%-15% and borrowing the rest. Of course, sponsors need willing investors to pull this off, but that hasn't been much of a problem. Over the past couple of decades, we have found that investors are only too willing to back LBOs. After all, it sure beats putting your money in Treasuries as far as returns are concerned. And while the record

Brief Excerpt: RESEARCH Ratings Definitions The Leveraging Of America: LBOs--The Good, The Bad, And The Ugly Publication date: 26-Nov-2007 Primary Credit Analysts: Nicholas D Riccio, New York (1) 212-438-7853; nick_riccio@standardandpoors.com Alison...

Report Type: Commentary
Sector: Corporations, Global Issuers
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 S&P Credit Research
S&P Credit Research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.