LBO companies are going through tough times

The health crisis is starting to affect tangibly the French economic fabric. The car rental company Europcar has seen its activity plunge since March. On the verge of bankruptcy, he had to turn to the French State and obtained in early May a loan of 220 million euros guaranteed by Bercy. The French ETI, which generated a turnover of around 3 billion euros last year, announced "an extraordinary cost reduction plan" to reduce its losses.

Read also: The State flies to the rescue of Europcar

Europcar had been bought in 2006 by the investment fund Eurazeo, which remains its main shareholder today. The car rental company is one of these companies acquired under LBO ( leveraged buy-out ), a financial technique which consists in buying a company via a holding company by indebted it, and in using the profits of the bought company to reimburse the borrowing.

The LBO ecosystem comes out of an exceptional decade. “We have lived a long growth cycle since 2011. The amounts

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