We use a proprietary dataset to explore (i) the financial covenant structure and (ii) the determinants of their restrictiveness in leveraged buyouts. With respect to (i) we find that the covenant structure is more standardized in sponsored than in non-sponsored loans: the former show less...

The sale of a company, where both buyer and seller are private equity funds, is commonly known as a secondary buyout. While the empirical evaluation of value creation and its drivers on deal level has been one of the focus areas of private equity research, this paper presents a specific analysis...

Most of the existing research on value creation drivers in private equity buyouts is restricted to the US and the UK, whereas continental European countries are not included. In addition, most of the generally applied methods for measuring the importance of different value creation drivers do...

Purpose – While secondary buyouts have gained in importance in recent years, specific drivers of value creation of this type of private equity deal are not yet well understood. Through the in-depth analysis of the acquisition of Brenntag by BC Partners, we develop propositions on the value...

In this paper we investigate the returns to venture capital firms from acquisition exits. Starting from M&A literature, we develop three detailed categorizations of acquisitions based on the acquirer's motive and related agency issues. We use a proprietary data set of 2,356 venture...

This paper analyses whether secondary buyouts have a value creation profile and offer equity returns different to that of primary buyouts. Using a sample of 2,456 buyout transactions (including 448 secondary buyouts), we find no evidence that secondary buyouts generate lower equity returns or...

Using a unique proprietary data set of 1,980 realized and unrealized buyouts completed between 1986 and 2010, we examine entry and exit pricing in buyouts and its influence on private equity (PE) sponsors' returns. We find that besides leverage and operational improvements, EBITDA multiple...

Understanding value creation at the transaction level is at the heart of explaining private equity (PE) returns. Taking advantage of a proprietary sample of 2,029 international buyout deals executed between 1984 and 2013 we provide detailed evidence on financial, market and operational value...

In this study we use a sample of 332 European mid-market buy-out transactions initiated by private equity firms over the period 1990 to 2011. The focus of this research is to identify and quantify the value creation drivers in buy-out transactions. For that purpose we use a novel methodology for...