| Popis: |
Barriers to cross-border leveraged buyouts (LBOs) can potentially take two forms: (1) the institutional environment of the target firm country and (2) differences in formal and informal institutions between LBO buyer and target countries. We establish that these barriers affect the volume of cross-border LBOs at the country level and, at deal level, the likelihood of both deal completion and the time required for negotiation. We provide new evidence that buyout syndicates composed of diverse private equity (PE) firms can mitigate the influence of these barriers. Diversity increases the syndicate’s familiarity with the target country’s institutions and enhances the probability of successful deal completion while reducing negotiating time. These benefits can be achieved even when the buyout syndicate does not include a PE firm from the target country. |
