Given how far companies’ valuations have sunk, you’d think we’d see a flood of managers taking control of businesses through management buyouts. But data from Dealogic reveals the opposite to be the case.
There have been 42% fewer management buyouts than there were last year at this time. The companies where management buyouts have worked out are also much smaller. Managers have bought out companies worth $476 million so far this year, vs. $2 billion during the same period of 2008.
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