Using a unique dataset, we examine financial performance, and venture capital (VC) involvement in 167 MBOs exiting through IPOs (MBO-IPOs) on the London Stock Exchange, during the period 1964 -1997. VC backed MBOs seem to be more under-priced than MBOs without venture capital backing, based on...

The impact of management buy-outs (MBO) on strategy and managementcontrol systems (MCS) is little understood. Previous research by Jones(1992) focused on efficiency-enhancing buy-outs that were a feature ofthe early development of the market. However, MBOs are heterogeneousand more recent...