Private equity buyouts ripple through supply chains, study finds

Private equity buyouts propagate deeply through corporate supply chains, creating sharp performance gains for suppliers in normal times but heavy financial distress during economic downturns, according to a working paper by the European Central Bank (ECB).

The exhaustive economic analysis, titled ‘The Supply Chain Spillovers of Private Equity Buyouts’, was co-authored by researchers Cédric Huylebroek of KU Leuven and Olivier De Jonghe, an economic expert at the European Central Bank....