Value Creation in LBOs

The thesis discusses the concept of value creation in leveraged buyouts (LBOs) and applies the knowledge on a selected “real-life” LBO transaction in the form of a case study. The first part of the thesis describes the current theoretical knowledge in the field of LBOs and introduces the currently accepted qualitative and quantitative approaches to value creation analysis in LBOs. The second part is structured in the form of a case study and aims to analyse the value creation process on the LBO of Kappa, a Czech air-filtration manufacturer and distributor. The case study outlines the LBO’s background, the target’s operational development and financial performance during the holding period and analyses the value creation from the quantitative and qualitative perspective. As a result, the key value drivers posing impact on the company’s value development within Kappa’s LBO are identified, assessed and evaluated.