Similar Search Results

Private Equity Acquisitions and Strategic Buyers : Information Discounts versus Synergies

Flor, Christian Riis - 2019

value creation with the target's remaining assets. Strategic buyers more often integrate with the target to obtain synergy … required return premium is smaller, and strategic buyers' synergy gains are smaller. Such takeovers by private equity funds can …

Persistent link: https://www.econbiz.de/10012865899

Evaluating Private Equity Performance Using Stochastic Discount Factors

Gredil, Oleg - 2020

We examine the performance of 2,790 private equity (PE) funds incepted during 1979-2008 using Stochastic Discount Factors (SDFs) implied by the two leading consumption-based asset pricing models (CBAPMs) — external habit and long-run risks — as their assumptions appear consistent with...

Persistent link: https://www.econbiz.de/10012845721

What is Different About Private Equity-Backed Acquirers?

Hammer, Benjamin - 2020

This paper investigates whether private equity (PE)-backed acquirers have a “parenting advantage” in the mergers & acquisitions (M&A) market. We employ a sample of 788 PE-backed firms and a carefully matched control group of 6,652 non-PE backed peers, for which we observe the entire...

Persistent link: https://www.econbiz.de/10012855190

Private Equity Economics : Compensation and Growth Dynamics

Lim, Wayne - 2022

This paper investigates the compensation and growth dynamics of private equity firms. Using proprietary data, I estimate that about half of their revenue is performance-related and find that current fund performance also has indirect effects on firms’ future revenue. The dynamics of these...

Persistent link: https://www.econbiz.de/10013405195

Private Equity Funds and Strategic Buyers -- Effort, Debt Overhang, and Cross-Subsidization

Clausen-Jørgensen, Charlotte Sun; Flor, Christian Riis; … - 2022

Private equity funds and strategic buyers search for targets, in particular those with valuable growth options and in financial distress. We analyze the role of private equity funds jointly with the effect of debt overhang and the effect of cross-subsidization with a strategic buyer's firm. A...

Persistent link: https://www.econbiz.de/10013492103

Buying to Sell : A Theory of Buyouts

Norbäck, Pehr-Johan - 2012

Private equity backed firms have more leverage, more intense compensation contracts, and higher productivity than comparable non-private equity backed firms. We develop a theory of buyouts in oligopolistic markets that ties these facts to an explicit focus on buying assets with the intent of...

Persistent link: https://www.econbiz.de/10013116316

Buying to Sell : A Theory of Buyouts

Norbäck, Pehr-Johan - 2010

Private equity firms are an important part of the industrial restructuring process. We argue that the key is temporary ownership. Buying to sell induces aggressive restructuring since the equilibrium trade sale price increases both because the profits of the acquiring incumbent increase and the...

Persistent link: https://www.econbiz.de/10013149351

Comparing Capital Allocation Efficiency in Public and Private Equity Markets

Sanati, Ali; Spyridopoulos, Ioannis - 2023

Investors increasingly allocate capital outside of public equity markets and through private equity investments. We evaluate capital allocation efficiency in public and private markets by comparing the marginal product of capital in firms that receive equity in each market. Public markets...

Persistent link: https://www.econbiz.de/10014355579

Buying to sell : a theory of buyouts

Norbäck, Pehr-Johan; Persson, Lars; Tåg, Joacim - 2010

Private equity owned firms have more leverage, more intense compensation contracts, and higher productivity than comparable firms. We develop a theory of buyouts in oligopolistic markets that explains these facts. Private equity firms are more aggressive in inducing restructuring compared to...

Persistent link: https://www.econbiz.de/10003914407

Timely "gain recognition" in debt contracting - evidence from cost savings and synergy add-backs

Jiang, Shushu - 2021

In this paper, I study the inclusion of cost savings and synergy add-backs (cost-synergy add-backs hereafter) in loan … contracts. Such add-backs allow borrowers to add unrealized cost savings and synergy gains into contractual earnings … calculations and thus reflect timely gain recognition in debt contracting. I find that the implications of cost-synergy add …

Persistent link: https://www.econbiz.de/10012595453