New Roles for LBO Players

The recent rise in LBO activities has also created a httle known phenomenon the largest number of deals that have yet to exit Our research indicates that only one third of LBO deals closed over the last twenty years have exited, most sold to trade buyers, with IPOs becoming an unhkely exit route (Fig. 8.9). There are indications from our interviews that some LBO owners are now becoming impatient with the increasing difficulty of achieving the kind of exit they had once hoped for. There is an increasing sense that the real test for the more recent LBO players in chemicals will come when they seek their exits. Some industry observers indicate there is now reason for caution about the rate at which the chemical LBO market will continue to grow. 

Given the impending exit challenges and the growing diversity and size of chemical deals, LBO players have to fundamentally rethink their roles and busi- 

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