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.
