Friday, January 13, 2017

No Buyout Rescues Are Coming for Battered Retailers

Image result for bed bath & beyondAs bad as things have been for struggling retailers, some have had unusually buoyant share prices.

Now one factor keeping them afloat may be fading away. The leveraged buyout, once fairly common for retailers, has become increasingly rare, at least for the larger companies. LBOs for retailers fell in 2016, with deal values totaling only $1.9 billion versus $8 billion in 2015 and $30.5 billion in 2006, according to Dealogic. Last year marked the lowest level by dollar volume since 2009. And while there were 20 retail LBOs in 2016, only one was worth more than $500 million. That compares with seven in 2006.. . . more

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