Methodological criticalities in the use of APV method in valuing LBOs

Abstract

The thesis analyses the LBO phenomena. In particular, it focuses on the main criticalities that arise when they are assessed using the adjusted present value method (APV). These criticalities in particular are: the rate at which the tax shield (TS) should be discounted, the quantification of bankruptcy costs, and finally how to make the APV method dynamic in such a way as to reflect the debt repayment scheme typical of a leveraged buyout operation.