This study provides an analysis of the changes in performance for a sample of 70 management buyouts (MBOs) of public companies that took place between 1997 and 2007, worldwide. Data for three years pre and post MBO were used to detect differences in profitability, performance, efficiency, liquidity, leverage and investment that occur due to the MBO transaction. The evidence suggests that companies do not experience greater profitability and efficiency in the post MBO period and do not improve their liquidity position. Leverage, on the other hand, increases and investment ratios give no evidence of expansion. These findings suggest that the overall performance of companies after the buyout does not improve.
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