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t Y e a r P r i c e ( $ b i l )KKR R J R N a b i s c o 1989 2 4 . 7 2$ KKR B e a t r i c e 1986 6 . 2 5$ KKR S a f e w a y 1986 4 . 2 4$ T h o m p s o n C o . S o u t h l a n d 1987 4 . 0 0$ A V H o l d i n g s B o r g Wa r n e r 1987 3 . 7 6$ Wi n g H o l d i n g s N WA , I n c . 1989 3 . 6 9$ KKR O w e n s I l l i n o i s 1987 3 . 6 9$ T F I n v e s t m e n t s H o s p i t a l C o r p o f A m e r i c a 1989 3 . 6 9$ F H A c q u i s i t i o n s F o r H o w a r d C o r p . 1988 3 . 5 9$ M a c y A c q u i s i t i o n C o r p . R H M a c y amp。The McGrawHill Companies, Inc., 2020 Irwin/McGraw Hill 34 4 Leveraged Buyouts ? The difference between leveraged buyouts and ordinary acquisitions: 1. A large fraction of the purchase price is debt financed. 2. The LBO goes private, and its share is no longer trade on the open market. 169。The McGrawHill Companies, Inc., 2020 Irwin/McGraw Hill 34 2 Topics Covered ? Leveraged Buyouts ? Spinoffs and Restructuring ? Conglomerates ? Private Equity Partnership