Subject. This article examines whether there is a dependence of the leveraged buyout returns on the transaction strategy. Objectives. Based on the refinement of leveraged buyout (LBO) strategies, the article aims to analyze their impact on the profitability of financial sponsors and identify trends in the development of leveraged buyout transactions. Methods. For the study, I used the methods of correlation analysis, comparison, the abstract-logical method, and a subject-related literature review. Results. Based on the analysis of data on public-private LBOs completed in the period from 1996 to 2018, the article determines the dependence of the leveraged buyout efficiency on the applied LBO strategy and tactics of cash flow allocation in the LBO process. The article emphasizes the importance of the company's full history of cash flows to and from the LBO sponsor not only during the transaction period, but until its actual completion, as well, to analyze the LBO returns. The article also shows the trends in the development of LBO transactions. Relevance. The results of the study can contribute to a deeper understanding of the factors affecting the level of LBO transaction profitability, and the further development of business acquisition leveraged transactions.
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