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The Decrease in Publicly Traded Companies and the Role of Leveraged Buyouts
This chapter examines the factors contributing to the decline in publicly traded companies, including lower tax rates, leveraged buyouts, and the shift from manufacturing to services. It discusses the potential drawbacks of this trend and highlights a study on the bankruptcy rates of acquired companies. The chapter also explores the challenges faced by private equity firms in taking companies public and the impact of financial engineering on stock returns.