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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 nonlinearities

Ledenyov, Dimitri O. and Ledenyov, Viktor O. (2014): 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 nonlinearities.

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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 in particular, and at the influences by the Schumpeterian creative disruption processes in the free market economy in general. Going from the academic literature, we make a comprehensive 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. Using the microeconomics principles, we develop the MicroLBO software: 1) to create the winning virtuous strategies toward the leveraged buyout transactions implementation, and 2) to compute the direct/reverse leverage buyout transaction probability number for the selected public/private companies. We formulate the Ledenyov theory on the winning virtuous strategies creation toward the leveraged buyout transactions implementation at the resonant absorption of discrete information in the diffusion - type financial system with the induced nonlinearities.

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