Environmental and social incidents and misvaluation-driven leveraged buyouts

Key Points

• Leveraged buyouts may arise from market misvaluation driven by environmental incidents and social factors.
• Key evidence indicates a significant misvaluation impact, particularly during 30% of noted incidents.
• Observational analysis examines financial markets affected by environmental and social disruptions, showcasing trends in private equity.
• This highlights the need for better assessment of risk factors influencing leveraged buyouts, particularly under conditions of misvaluation.