 On the fundamentals of winning virtuous strategies creation toward leveraged buyout transactions implementation during private equity investment in conditions of resonant absorption of discrete information in diffusion - type financial system with induced nonlinearitiesDimitri Ledenyov and Viktor Ledenyov MPRA Paper from University Library of Munich, Germany Abstract: The authors perform an original research on the fundamentals of winning virtuous strategies creation toward the leveraged buyout transactions implementation during the private equity investment in the conditions of the resonant absorption of discrete information in the diffusion - type financial system with the induced nonlinearities at the influences by the Schumpeterian creative disruption processes in the free market economy. We propose that the money is a financial computing process, which is executed by the operating system, representing an exchange medium, at a computing device. We make a comprehensive academic literature review on the various aspects of modern financial engineering approaches to make the private equity investments and design the leveraged buyout and venture capital firms, funds and transactions in the finances. We highlight a private equity’s important role in the Schumpeterian creative destruction processes in the free market economy, discussing the leverage buyout transactions process and properties. We develop the MicroLBO software: 1) to create the winning virtuous strategies toward the LBO transactions implementation, and 2) to compute the direct/reverse LBO transaction probability number for the selected public/private companies. We formulate the Ledenyov theory on the winning virtuous strategies creation toward the LBO transactions implementation at the resonant absorption of discrete information in the diffusion - type financial economic system with the induced nonlinearities. Keywords: winning virtuous strategies creation; corporate finance; corporate governance; private equity financing; leveraged buyout (LBO) firms/funds/transactions; venture capital (VC) firms/funds/transactions; management buyouts; direct/reverse leveraged buyouts (D/RLBOs); bootstrap acquisitions; mergers and acquisitions; “quick flips” business deals; capital structure; leverage risks; post-buyout company business operation efficiency over time; return on equity (ROE); return on investment (ROI); employment/productivity/innovation effects; ownership change; socially responsible investment; probability theory; information absorption theory; econophysics; econometrics; nonlinearities; meaning of money; leveraged finance; financial institutions; financial and economic systems. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:61805 Access Statistics for this paper More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC. |
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