Buy-outs in Family Firms: A Statistical Overview and Study of Value Creation

Feng, Ye (2011) Buy-outs in Family Firms: A Statistical Overview and Study of Value Creation. [Dissertation (University of Nottingham only)] (Unpublished)

[img] PDF - Registered users only - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Download (918kB)

Abstract

The aim of our research is to give an update on the research of Ball et al. (2008), and to carry on studying the statistical overview of the buy-outs/ins in family firms. In this respect, we have also compared the statistical overview of the buy-outs/ins in family firms to all buy-outs/ins. Secondly, with the inspiration from Migel et al. (2009), we examine how different factors (e.g. the source of buy-outs, the involvement of private equity investors and the type of buy-outs) affect the value creation in post-buyout companies. As such, we have a particular focus on how these factors influence the value creation in post-buyout of family firms.

The first phase of our research is based on the review of literature which forms the foundation and inspiration for our research and enhances our understanding of the key objectives we set forth in our research. Then we move forward to the second phase of our research: collecting data, analyzing and interpreting the data set and using statistical testing to obtain a real picture of our research data and to our hypotheses against it.

After thorough examination of the research questions and the hypotheses, we found that value creation in post buy-outs was independent on the source of the buy-out (e.g. divestment, family firms, secondary buy-outs and other). Secondly, we found that value creation in post buy-outs of family firms was higher in VC backed deals than non VC backed deals, and that in the short term more value is added in VC backed deals than in non VC backed deals (exit within 5 years). Furthermore, the value added in VC backed deals is higher in the short term (exit within 5 years) than the long term (exit after 5 years). Finally, we observed that the value creation in post buy-outs of family firms is generally higher in a management buy-out than a management buy-in deal.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 30 Apr 2012 08:19
Last Modified: 22 Oct 2016 14:07
URI: http://eprints.nottingham.ac.uk/id/eprint/24831

Actions (Archive Staff Only)

Edit View Edit View