Buyouts, Private Equity and Performance

Hoyes, A.G. (2010) Buyouts, Private Equity and Performance. [Dissertation (University of Nottingham only)] (Unpublished)

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This study sought to examine the often overlooked relationships between firm performance and various buyout types for a sample of 276 U.K. buyouts within the period of 1997 – 2006. The buyout types compared include: (1) Private Equity and non-Private Equity backed buyouts (2) Insider vs. outsider-led buyouts (3) Different sources of buyouts. Univariate and Multivariate statistical methods are used to test hypotheses derived from previous empirical evidence and an integration of Agency theory and Strategic Entrepreneurship theory.

Contrary to predictions, no significant performance differences between Private Equity and non-Private Equity buyouts and insider and outsider-led buyouts were identified. Also contrary to predictions Secondary buyouts were found to demonstrate superior turnover growth compared to buyouts originating from private and family firms, which in turn were found to outperform divestments in terms of both employment and turnover growth. A key finding is that Private Equity involvement does not lead to job destruction, questioning wealth-transfer arguments. This study also revealed the potential for growth in secondary buyouts and buyouts originating from private and family firms. These findings may be useful for Private Equity investors and private firm owners seeking a viable means of ownership transfer to ensure continuity.


Buyouts, Management Buyouts, MBO, MBI, Private Equity, Buyout Source, Divestment, Family Firm, Secondary buyout

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 18 Jan 2011 15:33
Last Modified: 20 Oct 2016 18:57

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