Vol: 12, Issue: 4 2022

Page: 099-114

Harnessing Innovation in Leveraged Buyouts: Strategies for Enhancing Business Acquisition Success

Shiven Dhawan

http://doi.org/10.37648/ijtbm.v12i04.007

This article explores the opportunities and challenges for PE LBO acquisitions. It presents potential mechanisms for successful financial outcomes for managers and organisations. It highlights three PE engagement phases with an LBO company: acquisition, planning, and execution. Many leveraged buyouts (LBOs) fail financially, negatively impacting their value chain. We investigate the impact of PE on innovation in PE LBOs. We offer insight into various factors that affect innovation and determine whether they contribute to acquisition failures. These factors include short-term ownership, management restructuring, incentive plans, and debt size factors on new product development and innovation. The platform helps leaders focus on innovation to improve investment and LBO success by streamlining decision-making and offering guidelines and recommendations. These principles may also support mergers and acquisitions (M&A) within organisations.