Advantages and Disadvantages Analysis and Legal Risks of LBO

Junhao Zou

doi:10.54254/2754-1169/25/20230505

Research Article

Open access

Published on 13 September 2023

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Zou,J. (2023). Advantages and Disadvantages Analysis and Legal Risks of LBO. Advances in Economics, Management and Political Sciences,25,242-248.

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Advantages and Disadvantages Analysis and Legal Risks of LBO

Junhao Zou *^,1,

¹ East China University of Political Science and Law

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/25/20230505

Abstract

The leveraged buyout (LBO) is an important and genius operation in the field of mergers and acquisitions. Companies expand and optimize their performance with the help of LBOs. The market as well as the society can also benefit from LBOs. But however, all coins have two sides. There are a lot of negative cases that illustrate that the LBO is not an impeccable operation. Shareholders’ benefit can be harmed and there are insider buyouts when managers impose on their shareholders as they are privileged with their insider power. This paper is going to discuss the advantages and disadvantages of LBOs.

Keywords

LBOs; advantages; disadvantages; risk

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References

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Cite this article

Zou,J. (2023). Advantages and Disadvantages Analysis and Legal Risks of LBO. Advances in Economics, Management and Political Sciences,25,242-248.

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About volume

Volume title: Proceedings of the 2023 International Conference on Management Research and Economic Development

Conference website: https://2023.icmred.org/

ISBN：978-1-915371-93-5(Print) / 978-1-915371-94-2(Online)

Conference date: 28 April 2023

Editor：Canh Thien Dang, Javier Cifuentes-Faura

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.25

ISSN：2754-1169(Print) / 2754-1177(Online)

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