On the Fundamentals of Winning Virtuous Strategies Creation Toward Leveraged Buyout Transactions Implementation During Private Equity Investment in Conditions of Resonant Absorption of Discrete Information in Diffusion-Type Financial System with Induced Nonlinearities

Abstract

The authors perform an original research on the fundamentals of winning virtuous strategies creation toward the leveraged buyout transactions implementation during the private equity investment in the conditions of the resonant absorption of discrete information in the diffusion-type financial system with the induced nonlinearities at the influences by the Schumpeterian creative disruption processes in the free market economy. We propose that the money is a financial computing process, which is executed by the operating system, representing an exchange medium, at a computing device. We make a comprehensive academic literature review on the various aspects of modern financial engineering approaches to make the private equity investments and design the leveraged buyout and venture capital firms, funds and transactions in the finances. We highlight a private equity’s important role in the Schumpeterian creative destruction processes in the free market economy, discussing the leverage buyout transactions process and properties. We develop the MicroLBO software: 1) to create the winning virtuous strategies toward the LBO transactions implementation, and 2) to compute the direct/reverse LBO transaction probability number for the selected public/private companies. We formulate the Ledenyov theory on the winning virtuous strategies creation toward the LBO transactions implementation at the resonant absorption of discrete information in the diffusion-type financial economic system with the induced nonlinearities.