In the empirical literature, leveraged buyouts (LBOs) have so far been treated as a largely American phenomenon of the 1980s. However, their rapid spread in the years leading up to the financial crisis has also brought this form of transaction to Europe and other continents. Furthermore, the interaction among those involved in LBOs has changed over the past two decades. To what extent do the empirical findings of the 1980s still hold validity? Rico Baumann systematically presents LBOs and analyzes the financial characteristics of LBO targets. He then assesses the wealth effects on LBO targets and the intra-industry effects on their competitors as a result of changes in stock prices.