LBOs in Emerging Economies: Specificities, Challenges, and Per-spectives

Abstract

This article investigates the adaptation of the leveraged buyout (LBO) model in emerging economies, highlighting the structural challenges specific to these environments. Based on a comprehensive review of theoretical and empirical literature, it identifies the institutional, financial, and regulatory constraints that limit the effectiveness of LBOs in such contexts. Unlike developed markets where LBOs have proven to generate value through financial discipline and active governance, their implementation in emerging countries faces shallow financial markets, weak corporate governance, and limited access to structured debt instruments. Using Morocco as a case study, the article outlines the limits of applying a model designed for mature economies and proposes forward-looking perspectives, including the strengthening of legal frameworks, the development of hybrid financial tools, and the role of international development finance institutions. The paper concludes by advocating for a contextualized approach that balances financial rigor with local adaptation.

JEL Classification: J24

Paper Type: Theoretical Research.