I had lunch with a hedge fund buddy of mine and he brought up the topic of this email.

He mentioned that he found lots of interesting stocks that were former LBOs that have been taken public again.  (Otherwise known as reverse leveraged buyouts or RLBOs.) This paper is almost 10 years old but I had seen very little on the topic so it was news to me.

Looks like that arena is fertile ground for searching for stocks!

A sumary then download:


Reverse leveraged buyouts (RLBOs) have received increased public scrutiny but attracted little systematic study. We collect a comprehensive sample of 526 RLBOs between 1981 and 2003 and examine three- and five-year stock performance of these offerings. RLBOs appear to perform as well as or better than other IPOs and the stock market as a whole, depending on the specification. There is evidence of a deterioration of returns over time.



The Performance of Reverse Leveraged Buyouts