The economics of leveraged buyouts

This book, which provides a comprehensive study of leveraged buyouts (LBOs) with a focus on the Italian market, is organized in 5 Parts that follow the natural logic of a LBO deal-making. The main topics discussed include: the structuring and financing of a leveraged buyout with description of its specific operational schemes and debt capital instruments; the turnaround of the target firm, with its strategic implications; the LBO valuation and asseveration techniques, with a reference to tax benefits, cost of capital and business plan sustainability; the empirical investigation of 53 LBO transactions carried out in the Italian market since 2002; the in-depth analysis of case studies, also featuring the financial modeling of a leveraged buyout through the provision of a downloadable Excel-based model; the recent developments of the regulatory (both statutory and fiscal) framework applied to LBOs in Italy.Francesco Baldi (Ph.D.) is an Adjunct Professor of Corporate Finance at the Department of Economics and Finance of LUISS Guido Carli University and an Adjunct Professor of Corporate Auditing at LUMSA University. He recently obtained the scientific qualification as associate professor in banking and corporate finance (ASN; art. 16, L. 240/2010). Besides being academically trained, Francesco has an extensive professional experience in the finance field. In 2006-2007, he has been a Chazen Visiting Scholar at the Division of Finance and Economics of the Columbia Graduate School of Business (New York, USA) and a Visiting Scholar at the MIT Sloan School of Management (Boston, USA) having received the 2006 "Fondazione IRI" scholarship in management studies. He is the recipient of 3 academic awards for his research work and the author of several monographs and articles published in international and Italian journals on topics ranging from corporate finance to private equity/corporate venture capital, banking and strategy.