Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Empirical Essays On Value Creation And Performance Effects Of Private Equity Backed Company Buyouts PDF full book. Access full book title Empirical Essays On Value Creation And Performance Effects Of Private Equity Backed Company Buyouts.
| Author | : Alexander Knauer |
| Publisher | : |
| Total Pages | : 410 |
| Release | : 2013 |
| Genre | : |
| ISBN | : |
| Author | : Kevin Elsäßer |
| Publisher | : GRIN Verlag |
| Total Pages | : 82 |
| Release | : 2018-01-11 |
| Genre | : Business & Economics |
| ISBN | : 3668608393 |
Master's Thesis from the year 2016 in the subject Business economics - Investment and Finance, grade: 1,0, European Business School - International University Schloß Reichartshausen Oestrich-Winkel, language: English, abstract: Private equity companies are seen as high risk investment funds, trying to gain high returns on their investments in a period of around three to seven years. Even if the private equity industry has played an important role in growth or as an external financing source of established companies as well as newly-established companies, private equity investors are not seen as sustainable value creators. In various occasions, private equity funds are even declared as a greedy instrument to earn fast money. In order to analyse whether private equity companies create value in a sustainable way, this study compares the performance of private equity backed initial public offerings (IPOs) with non-private equity backed IPOs. Moreover, it analyses whether private equity backed IPOs outperform the market. This study evaluates the performance of private equity backed IPOs by performing two separate empirical analyses: one focusing on the UK private equity market - the largest private equity market in Europe - and one focusing on the entire European market. The research conducts a quantitative analysis of secondary data, more specifically by using stock prices of private equity backed firms, non-private equity backed firms and applicable benchmark market indices. Such data was obtained from multiple sources, such as the London Stock Exchange, Bloomberg and Yahoo Finance. In general, the study compares the performance of private equity backed IPOs with non-sponsor IPOs with regard to their price development and abnormal returns. The analysis is based on multiple independent analyses of each IPO. In order to provide a general understanding of this issue and to be able to interpret the research results, the paper discusses the theoretical framework and the findings of other authors. In recent decades, several authors have demonstrated their research on private equity based IPOs as well as the value creation of private equity firms. Based upon these, hypotheses are formulated, which are then subsequently tested using multiple research methods. In general, the study indicates that the majority of private equity firms do not create sustainable value. More than 50% of the analyzed private equity backed companies were not able to outperform the market benchmark indices. On average, private equity backed firms were able to significantly outperform the market in the UK. However, they were unable to perform equally well on a European level.
| Author | : Nicolaus Loos |
| Publisher | : Springer Science & Business Media |
| Total Pages | : 490 |
| Release | : 2007-11-05 |
| Genre | : Business & Economics |
| ISBN | : 3835093290 |
Based on a dataset of over 3,000 leveraged buyout transactions, including performance data, Nicolaus Loos analyses how financial investors create economic value through their investments. He shows that various exogenous factors with respect to timing, industry, public market as well as deal specific factors can statistically be related to a buyout deal's performance. He also provides evidence of a "GP effect" in leveraged buyouts, i.e. that certain characteristics of a Private Equity firm and its investment professionals as well as a firm's buyout strategy approach and certain buyout target characteristics are important success factors.
| Author | : Samuel Hiller |
| Publisher | : |
| Total Pages | : |
| Release | : 2012 |
| Genre | : |
| ISBN | : |
This Bachelor thesis aims to contribute to the existing research on value creation in leveraged buy-outs by empirically analysing a current sample of portfolio companies in buyout funds. After a brief market review and an introduction to the workings of private equity as an asset class, a detailed overview of existing levers regarding value generation is provided, followed by the theoretical foundation and mathematical deduction of a buyout investment's core performance drivers. This framework provides the cornerstone of the subsequent empirical analysis which intends to answer four questions: (a) What drives the returns of leveraged buyouts? (b) How are these returns influenced by various factors, e.g. the transaction size? (c) How do buyout firms create value in their portfolio companies? and (d) do private equity backed companies perform better than comparable public industry peers? The key finding of this study confirms the assumed replacement of the leverage effect by a company's operating performance as the most important driver of buyout performance. In order to differentiate themselves from other buyout firms, LBO investors need to actively engage in portfolio company management to achieve significant improvements in operating performance and thus superior returns in a mature market. Furthermore, results highlight a positive influence of buyout investors on margin developments when compared to public industry peers. Private equity backed companies achieve substantially higher margin growth rates during the post-acquisition phase, despite their on average already superior performance prior to the buyout.
| Author | : Matthias Hetzenecker |
| Publisher | : GRIN Verlag |
| Total Pages | : 76 |
| Release | : 2020-11-19 |
| Genre | : Business & Economics |
| ISBN | : 3346299635 |
Bachelor Thesis from the year 2019 in the subject Business economics - Review of Business Studies, grade: 1,0, University of applied Sciences Regensburg, language: English, abstract: This paper examines value creation by private equity-backed IPOs. It gives detailed insights on a mostly US-based research topic analyzing 134 German IPOs from 2002 to 2018, of which 49 were identified as PE-backed, and contributes empirical evidence on the discussion of private equity value creation. The empirical results provide detailed information on whether private equity financing can be a suitable financing source for companies by comparing and analyzing the performance differences between IPOs of companies with and without private equity sponsors. Furthermore, the paper provides empirical evidence on the IPO phenomena of underpricing and negative long-term performance for Germany, differentiating itself from former studies in terms of a broader time horizon and an extensive return calculation methodology. Since the locust swarms debate initiated by SPD politician Franz Müntefering, private equity investors have had to struggle with an extremely bad reputation in Germany. Unpopular measures such as company divestures or mass redundancies to achieve set turnover and return targets reinforce the negative image of financial investors. Accordingly, investor and business magnate Warren Buffet criticized that businesses under private equity control become a piece of merchandise. Nonetheless, the private equity industry continues to boom, reaching new records in terms of global business volume and transactions. Under these circumstances and new evolving discussions, it is essential to take a close look at the business model of private equity firms and to analyze potential short- and long-term value creation in their portfolio companies.
| Author | : Mike Wright |
| Publisher | : Edward Elgar Pub |
| Total Pages | : 513 |
| Release | : 2008 |
| Genre | : Business & Economics |
| ISBN | : 9781847207258 |
Private Equity and Management Buy-outs provides a balanced view of the often polarized private equity debate. This careful and objective analysis of the presence of private equity in buy-out firms reviews the effects of this ownership transfer in terms of firm performance and survival, thus placing private equity in a broader context of implications for value creation.The analysis provides an overview of international trends in private equity and develops a conceptual framework for understanding the heterogeneity of private equity deals. Systematic evidence from large-scale studies of private equity and buy-outs are used to shed light on short- and longer-term economic and social effects. For the first time the broader scope of the key issues now facing private equity and buy-outs are brought together in the contributions herein. The book includes highlights such as:* empirical evidence on a special organizational form of private equity;* examination of backed buy-outs (perspectives from strategy, finance, HRM and management accounting);* discussion on the level of PE involvement;* challenging further debate on economic and social key issues regarding policy implications and a future research agenda.Academics and researchers - postgraduate and above - in business schools and schools of economics will find this book enlightening. It will also hold great interest for practitioners in the fields of mergers and acquisitions, general, strategic and financial management, and corporate entrepreneurship and corporate governance.
| Author | : Oliver Ahlers |
| Publisher | : Springer |
| Total Pages | : 253 |
| Release | : 2014-07-25 |
| Genre | : Business & Economics |
| ISBN | : 3658040947 |
Family firms are of particular importance for many economies. We know little about family firm buyouts and how they are different from non-family firm buyouts. Oliver Ahlers investigates this under-researched topic. After a comprehensive literature review on family firm buyouts, the focus of his book is on the key steps of the investment process such as family firm valuation and negotiations between PE investors and family sellers. Additionally, it is investigated how “soft factors” such as trust, reputation or commitment could play an important role when PE and family firms interact. Throughout the book, differences between family and non-family firm buyouts are highlighted.
| Author | : Andreas Schneider |
| Publisher | : |
| Total Pages | : |
| Release | : 2008 |
| Genre | : |
| ISBN | : |
The objective of this master's thesis is to contribute to the understanding of value creation in buyouts. The first part reviews two theoretical concepts that contribute to the explanation of various aspects in relation to value creation and presents a framework that identifies and links the different levers of value creation. The second part covers an empirical analysis that (i) examines the relative contribution of the most important of these levers (key value drivers) to the performance of leveraged buyouts (ii) and analyzes the impact of various factors such as transaction size, geographical region, entry year, exit type, holding period and entry mode on these levers and the resulting performance of buyouts. The data sample comprises a total of 42 realized European leveraged buyout investments with an entry enterprise value of at least &u8364150mn and the entry not dating back further than 1993. This study highlights, among other things, the predominance of the leverage effect as the key value driver in European leveraged buyouts and that private equity firms increasingly start to focus on the operating performance of their portfolio companies as a lever to drive value creation. Also, this work provides evidence that in today's competitive acquisition environment, multiple riding is far less common than in earlier years.
| Author | : Moritz Breuninger |
| Publisher | : GRIN Verlag |
| Total Pages | : 64 |
| Release | : 2013-11-29 |
| Genre | : Business & Economics |
| ISBN | : 3656551855 |
Master's Thesis from the year 2013 in the subject Business economics - Business Management, Corporate Governance, grade: 7,5, Erasmus University Rotterdam (Strategic Management), language: English, abstract: Recent changes in the market for private equity have led investors to shift their attention away from market beta and towards generating alpha through the exploration of growth opportunities. PE firms increasingly use active ownership to implement these new growth plans. Buy and build strategies have emerged as a feasible and lucrative strategy of active ownership. The add-on acquisitions required when pursuing this strategy and the need to create value through synergistic effects necessitate post-acquisition integration efforts. Despite its relevance, researchers in the field of strategic management and finance have paid little attention to buy and build strategies. Moreover, they have yet to bridge the findings by scholars and practitioners on post-acquisition integration and active ownership. This paper seeks to fill this gap by answering the research question of how PE firms contribute to the integration process and how they handle task and affective conflicts and exercise management control with regard to the cooperation between the PE firm and the management of the portfolio company. Previous work has linked active ownership to capabilities and found that prior business experience is a strong predictor of active ownership, meaning a high level of contribution by the investment firm. This paper complements this work by analyzing active ownership of private equity firms in the context of post-acquisition integration in buy and build strategies and finds a direct link between capabilities and active ownership through four explanatory theory-building case studies. Birkinshaw et al. (2000)’s study on post-acquisition integration is used as a guiding concept in this paper. They distinguish between task integration, which is defined as the identification and realization of operational synergies, and human integration, which is defined as the creation of positive attitudes towards the integration and shared identity among employees. This paper creates a practical Framework for Integration Management on this notion and extends it by additional academic literature and relevant studies of consulting firms. A number of working propositions are derived from the literature and linked to the framework. Each proposition is then tested through within-case analysis and across-case comparison. Based on the evidence, three propositions are revised or extended whereas six propositions are supported. [...]
| Author | : Degenhard Meier |
| Publisher | : Deutscher Universitätsverlag |
| Total Pages | : 159 |
| Release | : 2006-02-24 |
| Genre | : Business & Economics |
| ISBN | : 9783835002289 |
Degenhard Meier explores the dimensions of post-investment value addition characterizing the interaction between private equity firms and their portfolio companies and derives plausible hypotheses which he tests in an innovative way, i.e. he takes the current discussion on alternative methods to structural equation modeling as a basis and develops this discussion further by shedding light on partial least squares - a variance-based approach to structural equation modeling.
