The Research Of The Effects Of LBO On Target Company’s Competitors

That is a leveraged buyout sponsors assume the way to make the acquisition of ahigh proportion of debt to exceed their ability to acquire the target company bid M&Aactivity. As China’s capital market accompanied by rapid economic growth, its ownsystem step by step development and improvement, mergers and acquisitions leveragedbuyouts in the proportion of our growing, so the eyes of many experts have transferredto the leveraged buyout market. Leveraged buyouts in foreign countries has had decadesof history of its research system is relatively mature, the other participants in the capitalmarkets and domestic companies, leveraged buyouts is only in its infancy, most casesof domestic and foreign capital to acquire the operation of, and with foreign financialinstitutions doing consulting. Therefore, as soon as possible to improve the theoreticalsystem of leveraged buyouts, mergers and acquisitions to determine which financialenvironment in China ’s mode of operation, as much as possible to reduce the risk ofbusiness due to the formation of a lever, this article hopes for U.S. leveraged buyoutsempirical case studies to prove LBO target company’s competitors for the impact, andfinally provide the basis for other companies risk prevention.In this paper, for the case of a U.S. public company with a leveraged buy-assistedmathematical functions OIBDA index calculation, industry classification for listedcompanies, after the screening along with the acquisition of the total of each of theaffected companies. Use of the time in the company’s U.S. Securities and ExchangeCommission disclosed to the public, whether the management of the company, changesin the company’s profits, the regression using Stata software for data analysis.According to changes in the business indicators, drawn by the degree of influence therole of leveraged buy-outs, and finally summarized.