With financing free and easy, many companies are coming out of leveraged buyouts with just enough cash flow to cover their interest expense and capital spending, according to an analysis by The Deal. But some buyouts have more liquidity and flexibility than might appear on the surface, The Deal writes. Breakingviews suggests that easy access to funds has driven many private equity firms to chase "larger, more expensive and overly indebted companies," which it calls a "classic sign of a bubble."
• Go to Article from The Deal
• Go to Article from Breakingviews