We develop and test a model of debt structure and pricing in leveraged buyouts (LBOs). The model accounts for both market and firm specific variables and illustrates how collateral, security and seniority, as well as target future cash-flows and market interest rates determine the cost of...

EV/EBITDA multiple expansion in Private Equity (PE) transactions strongly influences deal returns. As multiple expansion is the result of deal pricing differences between entry and exit, this paper attempts to shed light on how relative deal pricing influences multiple expansion and deal...

This paper analyzes the impact of performance, investment-firm-related, and macroeconomic variables on fundraising activities in private equity (PE). We use a novel, backward-looking approach to link current to preceding funds, which allows for including several parallel predecessor funds in our...

This study examines how Specified Purpose Acquisition Companies (SPACs) have been used as a financing tool for the shipping industry in period 2004-2013. SPACs that focused on acquisitions in the shipping industry statistically have similar characteristics as the population of SPACs that entered...

There is a widespread belief among observers that a lower premium is paid when the target CEO is retained by the acquirer in a private equity deal because the CEO's potential conflicts of interest leads her to negotiate less aggressively on behalf of the target shareholders. Our empirical...

We show how temporary ownership by private equity firms affects industry structure, competition and welfare. Temporary ownership leads to strong investment incentives because equilibrium resale prices are determined by buyers incentives to block rivals from obtaining assets. These incentives...

This study investigates the transition from being a listed company with a dispersed ownership structure to being a privately held company with a concentrated ownership structure. We consider a sample of private equity backed portfolio companies to evaluate the consequences of the corporate...