Importance The article emphasizes key specifics of leveraged buyouts in the Russian market and determines respective prospects in Russia, considering domestic and global economic trends. Objectives The research investigates the Russian market of deals for leverage buyouts as part of mergers and acquisitions market as compared with global trends, and analyzes key indicators of the deal closed by Sistema Financial Corporation for leveraged buyout of companies in several industries. Methods Using econometric methods, I analyzed global and domestic M&A market in terms of the amount and number of deals and determined how the leveraged buyout market mainly develops. Results The leveraged buyout market in Russia evolves identically with the global M&A market. Currently, the Russian M&A market is underdeveloped as opposed to the global one. Whereas the leveraged buyouts are of closed nature, it is difficult to forecast its development. Conclusions and Relevance Considering global turbulence, leveraged buyouts and the entire M&A market will develop after the financial market is fundamentally altered. Inflation and growing borrowing costs considerably impede the development of leveraged buyout practices, since they lose their attractiveness due to the leverage finance mechanism.
Keywords: mergers and acquisitions, leveraged buyout, transaction
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