, Columnists
Ghost of Buyouts Past
Firms can learn from mistakes and avoid disasters yet to come.
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To firms planning to buy other companies with borrowed money in the new year: Please take a moment to reconsider and learn from those who have gone before you.
It's true that companies flop all the time. But those that borrow gobs of money have a narrower margin for error. And companies in some sectors popular for leveraged buyouts, such as technology, media and retail, tend to be those on the thinnest ice. Trends can change quickly, along with a company's fortunes.