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Private equity critics claim that leveraged buyouts bring huge joblosses and few gains in operating performance. To evaluate theseclaims, we construct and analyze a new dataset that covers USbuyouts from 1980 to 2005. We track 3,200 target firms and their150,000 establishments before and after acquisition, comparing tocontrols defined by industry, size, age, and prior growth. Buyoutslead to modest net job losses but large increases in gross job creationand destruction. Buyouts also bring TFP gains at target firms,mainly through accelerated exit of less productive establishmentsand greater entry of highly productive ones. (JEL D24, G24, G32,G34, J23, J63, L25)