This is a balanced attempt to present risk-reward scenarios of leveraged buyouts. The leveraging of American Business is explored through case presentations of companies that have been purchased largely with debt. It shows what each transaction meant to the management of the company before and after the buyout and looks at potential returns to management if the business meets its projections. Events that led up to and actually sparked the buyout are examined.

Table of Contents

WHAT MANAGEMENT SHOULD KNOW ABOUT LEVERAGED BUYOUTS. History and Background. How Risky are LBOs? LBO Failures. Why Leveraged Buyouts Will Remain Viable. BENEFITS TO OWNERS AND MANAGEMENT. Why Owners Should Consider a Leveraged Burnout. Conflict of Interest. What Buyers Look for in LBO Candidates. STATISTICAL COMPARISON OF 30 LEVERAGED BUYOUTS. Purchase Price. Management Participation. Bankers and Fees. Debt Terms and Coverage. Financial Structure Breakdown. ANATOMY OF A LEVERAGED BUYOUT. Mezzanine Financing. Projecting a Profit and Loss Statement, A Cash Flow Statement and a Balance Sheet. LEVERAGE BUYOUTS CASES. Pannill Knitting. Dr. Pepper. Woodward & Lothrop. Kincaid Furniture. Guilford Industries. Perfect Fit. Metromedia. Multimedia. Piece Goods Shops, Inc. Glendale Fabrics. LADD Furniture. Cone Mills. Dan River Inc. Levits Furniture Corporation. Reliable Stores, Inc. Financial Analysis of Pannill Knitting Buyout. Glossary. INDEX.