The Potential Contributions of Leveraged Buyout (LBO) to the Development and Integration of African Countries
Assoumou Menye Oscar,
Djefedie Stéphane Contard
Issue:
Volume 11, Issue 4, July 2023
Pages:
124-133
Received:
5 July 2023
Accepted:
21 July 2023
Published:
31 July 2023
Abstract: Leveraged buyouts (LBOs) are a financial arrangement that allows the acquisition of a company by taking on debt. To implement the LBO, a passive holding company must first be created whose sole corporate purpose is to hold equity stakes in operational SMEs. An active holding company, on the other hand, manages a portfolio of equity stakes, but also actively participates in setting group policy and overseeing its subsidiaries. LBOs stand for Leveraged Buyouts, meaning a buyout with leverage. This acquisition is made through a bank loan or by issuing bonds. At the end of the bond term, the acquired company is generally listed on the stock exchange in order to generate capital gains for all investors. Ultimately, the holding company did not commit its own funds and managed to pay off the bank financing thanks to dividends. Indeed, to ensure the success of an LBO operation, it is essential to audit the target company and verify its ability to generate profits to distribute dividends that will allow the holding company to pay off its debts. LBOs experienced remarkable growth in the United States in the early 1970s, in Europe in the 1980s, and in Africa since the 2000s. These operations, which can take various forms (leveraged buyouts, debt-financed acquisitions, acquisition through borrowing, takeover through borrowing), are financial techniques for buying companies that allow investors to acquire companies while minimizing acquisition costs and maximizing their financial returns. This article, through a simulation process, tries to show how LBOs can boost and stimulate the development and integration of African countries. These operations are becoming increasingly useful or even essential for African companies whose size has proven to be a distorting factor in their development, not to mention the consequences of the recent emergence of COVID-19. Ultimately, we propose LBOs as a real panacea to strengthen the growth, development and pooling of forces of African companies.
Abstract: Leveraged buyouts (LBOs) are a financial arrangement that allows the acquisition of a company by taking on debt. To implement the LBO, a passive holding company must first be created whose sole corporate purpose is to hold equity stakes in operational SMEs. An active holding company, on the other hand, manages a portfolio of equity stakes, but also...
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Analysis of Environmental Accounting and Reporting Practices of Listed Banking Companies in Nigeria
Adebayo Kajogbade Kameel,
Adegbie Folajimi Festus
Issue:
Volume 11, Issue 4, July 2023
Pages:
134-142
Received:
22 July 2023
Accepted:
11 August 2023
Published:
28 August 2023
Abstract: Globally, environmental accounting and reporting practices as a branch of accounting has been significantly accepted to improve organizational financial performance as a result of both financial and non-financial disclosure on the usage of key natural resources. Multiple uncoordinated legislations by several environmental agencies and lack of technical monitoring devices are responsible for partial compliant with these regulations. Evidence from literature showed that it has improved community and organizational relationship. Nigeria Deposit Money Banks, as a subset of global corporate bodies were reviewed in this study for complete adherence to the Global Reporting Initiative (GRI) requirements and identify any challenges for non-compliant with environmental regulations. Ex-post facto research design was employed by the study. Sample of fourteen listed banks were selected out of the population of twenty two banks using purposive sampling technique. Secondary data were obtained from the annual reports and accounts of fourteen listed deposit money banks as at December 31, 2019. Data obtained were reviewed along the adapted environmental reporting indicators and previous research works conducted by earlier researchers. Contents analysis approach was adopted. The study revealed that Nigeria deposit money banks do not strictly adhere to global reporting initiative requirements since environmental reporting is at voluntary stage in Nigeria; Inadequate monitoring by the environmental agencies and regulatory auditors and non-inclusion of EA & RP in their annual reports and accounts. Challenges identified for non-compliant were categorized three main groups namely; legal frameworks, DMBs related problems and Staff / Individual related problems. The study concluded that environmental accounting and reporting practices is positively significant to the corporate performance reporting; and its inclusion of non-financial reporting has significantly improved corporate decision. Nigerian deposit money banks have identified its relevance to their global acceptance by foreign investors and stakeholders. The study recommended that regulators and accounting professional bodies should make environmental accounting and reporting practices mandatory and its preparation and presentation should be uniform for easy understanding and analysis. Legal framework and policies should be enhanced by governments and agencies while auditors should be mandated to include EA & RP on their checklists.
Abstract: Globally, environmental accounting and reporting practices as a branch of accounting has been significantly accepted to improve organizational financial performance as a result of both financial and non-financial disclosure on the usage of key natural resources. Multiple uncoordinated legislations by several environmental agencies and lack of techn...
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