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The internal rate of return (IRR) is often used by managers and practitioners for investment decisions. Unfortunately, it has serious flaws: among others, (i) multiple real-valued IRRs may arise, (ii) complex-valued IRRs may arise, (iii) the IRR is, in general, incompatible with the net present...
Persistent link: https://www.econbiz.de/10013116436
There are various valuation methodologies applicable to both the financial evaluation of projects as to the valuation of companies. First, have developed methods of Discounted Cash Flows (DCF), which allow discounting, or bring to present value, a series of projected future cash flows over time....
Persistent link: https://www.econbiz.de/10013079111
The internal rate of return (IRR) is often used by managers and practitioners for investment decisions. Unfortunately, it has serious flaws: (i) multiple real-valued IRRs may arise, (ii) complex-valued IRRs may arise, (iii) the IRR is, in general, incompatible with the net present value (NPV) in...
Persistent link: https://www.econbiz.de/10010763083
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Persistent link: https://www.econbiz.de/10013472361
affects the portfolio companies. We investigate financial distress risks of European companies around the buyout event in the … period between 2000 and 2008. In addition, we analyze whether buyout companies go bankrupt more often than comparable non-buyout … comparable companies and that the distress risk increases after the buyout. Despite this increase, private equity …
Persistent link: https://www.econbiz.de/10010307834
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This dissertation analyzes whether institutional investors have to adjust their investment behavior to the new realities of the maturing private equity industry and if so, in which way. The author identifies and evaluates various conflicts of interests between institutional investors and private...
Persistent link: https://www.econbiz.de/10010503099
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Leadership transition in private equity firms is an understudied field, despite the important, albeit controversial, role such firms play in developed economies. We analyzed 260 firms in an empirical study, supplemented by qualitative interviews with a small sample of highly experienced LPs and...
Persistent link: https://www.econbiz.de/10013173353