Deming Institute

SEPTEMBER 24, 2018

million in a Leveraged Buy Out (LBO) to buy an Oklahoma based Coca-Cola bottling company. On April Fools Day 1980, Bob Browne and his partners invested $7.5 When they sold the company in 2011, they had recouped over $400 million in after-tax dollars! Ask Bob if this was his crowning achievement, and he will quickly say, “No”.

Blog 49

Blog Deming LBO Leveraged Buy-out 49

Harvard Business Review

JUNE 29, 2015

Amess, Stiebale, and Wright gathered information from three different databases—one on firm characteristics like sales and industry type, one on LBO deals, and one on patent applications and citations. Their sample included 35,081 firms and 407 buyouts that took place between 1998 and 2005. that didn’t undergo buyouts.

LBO 8

LBO Innovation Sample Short-term 8

Harvard Business Review

SEPTEMBER 30, 2014

In 1976, the famous LBO firm KKR was formed and starting charging its clients 2% of assets under management and 20% of the upside they created for their clients, opening the door to massive wealth accumulation for high-flying fund management talent.

LBO 9

LBO Arkes Open-book Incentives 9

Harvard Business Review

AUGUST 9, 2016

This phase was loosely called leverage buy out (LBO) from about 1979 to 1990 and included over 2,000 LBOs. These buy outs shifted agency from owners to managers; “corporate raiders” worked with high-yield debt to fund these turnarounds.

LBO 8

LBO Restructuring Real Estate Leveraged Buy-out 8