Management Buyouts, Efficient Markets, Fair Value and Soft Information

Abstract

Leveraged buyouts, particularly by a corporation's management, provide unique opportunities for investors to realize extraordinary profits. In his Article, Professor Repetti examines the potential harm to shareholder interests when management effects a corporate buyout or bailout, and analyzes the effectiveness of current regulatory and common-law protection against that harm Professor Repetti concludes that the existing regulatory and common law schemes do not adequately protect shareholder interests and proposes as a solution that the Securities and Exchange Commission promulgate rules requiring enhanced disclosure in management buyouts.