Factors Affecting the Probability of Choosing a Company as a Target in LBO Transactions

Master’s dissertation provides the comparative analysis of factors that facilitate the decision-making process of choosing a leveraged buyout (LBO) as a type of transaction in the context of Russian companies. The document contained information on the different approaches of both the interpretation of LBO definition and the method which can be applied to assess the attractiveness of LBO target. Also, we examine factors not directly related to firms’ indicators but the market condition. The foreign literature of the stated topic is observed as well as Russian publications fostering the common understanding of subject definition. Thus, the paper applies two vision on determining factors and implements the approaches: direct and indirect, according to their derivations. Considering the literature theses eight hypothesis are developed. Following the structure of our study two model are tested and their results are interpreted as the outcomes of the proposed hypothesis. The first model displays the importance of exogenous factors to market propensity. And the second model is applied to analyze the probability of companies become the targets in LBO transactions. During analysis, the sample of Russian transactions between 2010 to 2019 is practiced. The research engages 379 LBO deals for processing indirect approach and 172 transactions to examine direct’ hypothesis. Results achieved with hypothesis testing could serve as a basis for further research of LBO transactions.