Chapter 8. The Alchemy of Leveraged Buyouts

  1. Florian Budde4,
  2. Gary A. Farha5,
  3. Heiner Frankemölle6,
  4. David F. Hoffmeister7 and
  5. Konstantin Krämer4
  1. G. Sam Samdani1,
  2. Paul Butler2 and
  3. Rob McNish3

Published Online: 8 OCT 2001

DOI: 10.1002/3527600310.ch8

Value Creation: Strategies for the Chemical Industry

Value Creation: Strategies for the Chemical Industry

How to Cite

Samdani, G. S., Butler, P. and McNish, R. (2001) The Alchemy of Leveraged Buyouts, in Value Creation: Strategies for the Chemical Industry (eds F. Budde, G. A. Farha, H. Frankemölle, D. F. Hoffmeister and K. Krämer), Wiley-VCH Verlag GmbH, Weinheim, FRG. doi: 10.1002/3527600310.ch8

Editor Information

  1. 4

    McKinsey & Company, Inc. Taunustor 2 D-60311 Frankfurt/Main Germany

  2. 5

    McKinsey & Company, Inc. 600 14th Street, N.W. Suite 300 Washington, D.C. 20005 USA

  3. 6

    McKinsey & Company, Inc. Magnusstrasse 11 D-50672 Cologne Germany

  4. 7

    McKinsey & Company, Inc. 600 Campus Drive Florham Park, N.J. 07932-1046 USA

Author Information

  1. 1

    Mc Kinsey & Company, Inc. New Jersey

  2. 2

    Mc Kinsey & Company, Inc. London

  3. 3

    Mc Kinsey & Company, Inc. Washington, D.C.

Publication History

  1. Published Online: 8 OCT 2001
  2. Published Print: 29 MAR 2001

ISBN Information

Print ISBN: 9783527302512

Online ISBN: 9783527600311

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Keywords:

  • leveraged buyouts;
  • chemical LBOs;
  • divestment value;
  • collaboration;
  • leveraged recapitalization;
  • LBUs

Summary

  • The Saga of the Deals

  • What is Attractive about Chemical LBOs

  • How Value is Created in Chemical LBOs

  • Infecting Chemical Corporations with the LBO Virus

    • Maximizing M & A Performance and Divestment Value

    • Operating Like a Financial Holding Company

    • Implementing Do-it- Yourself ‘Internal LBOs’

    • Harnessing the Catalytic Power of Collaboration

    • Executing Leveraged Recapitalization

  • New Roles for LBO Players

    • Portfolio Optimizer

    • Aggressive Consolidator

    • Spanning the Alliance Spectrum

    • LBUs: Moving beyond the Conventional LBOs

  • Steps toward a Natural Convergence