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

At the same time, there are certain ways LBOs can actually make it easier for firms to invest in the long term. Because of their relationships with banks, PE funds can get financing much cheaper than target companies could under their current management. 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

The types of private equity firms and the approaches to managing these firms has evolved over the last 40 years through three general phases. This phase was loosely called leverage buy out (LBO) from about 1979 to 1990 and included over 2,000 LBOs. In this phase, the acquired property is not just managed, but transformed.

LBO 8

LBO Restructuring Real Estate Leveraged Buy-out 8