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? Control and Governance 169。? Control, Governance, and Financial Architecture Principles of Corporate Finance Brealey and Myers Sixth Edition Slides by Matthew Will Chapter 34 169。The McGrawHill Companies, Inc., 2020 Irwin/McGraw Hill 169。The McGrawHill Companies, Inc., 2020 Irwin/McGraw Hill 34 3 Definitions ? Corporate control the power to make investment and financing decisions. ? Corporate governance the role of the Board of Directors, shareholder voting, proxy fights, etc. and the actions taken by shareholders to influence corporate decisions. ? Financial architecture the financial anization of the business. 169。The McGrawHill Companies, Inc., 2020 Irwin/McGraw Hill 34 5 Leveraged Buyouts ? The three main characteristics of LBOs: 1. High debt 2. Incentives 3. Private ownership 169。 C o 1986 3 . 5 0$ B a i n C a p i t a l S e a l y C o r p . 1997 8 1 1 . 2 0$ C i t i c o r p V e n t u r e C a p i t a l N e e n a h C o r p . 1997 2 5 0 . 0 0$ C y p r u s G r o u p ( w / m g m t ) WE S C O D i s t r i b u t i o n I n c . 1998 1 , 1 0 0 . 0 0$ C