Kurilova A.A.Published in:
Global Markets and Financial Engineering (Russian version)
– Volume 3, Number 3 (July-September)

JEL classification: G11, G24, G38

Keywords: amalgamation and mergers, debt financing, Leveraged Buyout, Management Buyout, redemption using borrowed funds


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Abstract:

The article is devoted to the study of application of Leveraged Buyout and Management Buyout transactions and methods of their financing in Russia in comparison with foreign experience. The author reveals the main reasons for low popularity of the application of LBO and MBO methods in the M&A market in Russian environment. We also touch upon the potential of domestic companies for the use of these methods. The article suggests measures that can popularize the application of these types of transactions in Russian environment. The paper also suggests the method for primary assessment of the company in order to identify it as a good candidate for the role of the participant in the LBO and MBO transaction.

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