Are LBOs a way of repairing the effects of capitalism ?

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Guillaume APPÉRÉ

Engineer, Ecole des Mines, Author, L'avenir des LBO, third-year thesis for the Corps des mines


François ROSENFELD

Engineer, Ecole des Mines, Author, L'avenir des LBO, third-year thesis for the Corps des mines


Bruno LAFONT

CEO, Lafarge


Patrick SAYER

Chairman, management board, Eurazeo

Seminar Guest speakers | Monday April 6, 2009 - 19h - 21h15

In the euphoria which gripped the financial markets, and the infamous bubble which resulted from it, LBOs (leverage buy-outs) were the subject of frenzied enthusiasm. Now that the bubble has burst, do they still have a future ? The press has often replied negatively to this question, pointing out that 'the party has been over' since the beginning of 2008. It is a fact that the number of new LBOs has fallen sharply, and that the famous 'lever effect' has sometimes been replaced by a 'staggering, dull blow'. In spite of this, in the their final-year thesis for the Corps des mines, François Rosenfeld and Guillaume Appéré consider that LBOs do have a future, not as the favourite betting system of fans of the so-called 'casino economy', but as a means to repair capitalism, especially in a country such as France where there is a chronic shortage of capital and capitalists. However, there is one proviso for this : more information must be given about the social impact of LBOs, and the particularly advantageous way LBOs have been handled by the Inland Revenue and the banks.

The entire article was written by:

Élisabeth BOURGUINAT

This session was published in issue n°79 of the Journal de l'École de Paris du management, entitled Rêver et gérer.

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