External Growth and Alignment of Interests

Overview


In Depth


Carole Degonse and Antoine Vergnat wrote this bylined article showing how leveraged buyouts (LBOs) combine company management, shareholder and lender interests. “This might seem obvious as it is the very essence of how an LBO enables corporate leaders to participate in the success of their companies along with their financial investors,” the authors wrote, but more than two centuries after Adam Smith described it “we can only note how this maxim is still relevant.”