Private Equity Portfolio Company Performance During The Global Recession

Mike Wright, D. S. Siegel () and L. Scholes ()
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L. Scholes: -

Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium from Ghent University, Faculty of Economics and Business Administration

Abstract: We assess the recent economic and financial performance of U.K. private equity (PE) backed buyouts. Our empirical evidence, which is based on thousands of transactions, reveals that PE-backed buyouts achieved superior economic and financial performance in the period before and during the recent global recession, relative to comparable firms that did not experience such transactions. Our regression results imply positive differentials of 5-15% in productivity and approximately 3-5% in profitability for buyout firms, relative to non-buyout firms. Another key finding is that revenue and employment growth for PE- backed firms were positive during the sample period.

Keywords: management buyouts; private equity; total factor productivity; employment; financial performance (search for similar items in EconPapers)
JEL-codes: G32 G34 (search for similar items in EconPapers)
Pages: 2 pages
Date: 2012-06
New Economics Papers: this item is included in nep-eff and nep-fmk
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Citations: View citations in EconPapers (30)

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Journal Article: Private equity portfolio company performance during the global recession (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:rug:rugwps:12/795

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