THE CHANGE IN OWNERSHIP AFTER A BUYOUT: IMPACT ON PERFORMANCE

L. Goossens (), Sophie Manigart and Miguel Meuleman

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

Abstract: This paper analyses the impact of the change in ownership after a management buyout on both post-buyout efficiency and growth. We contrast family firm buyouts with divisional buyouts, and private equity (PE) financed buyouts with non-PE financed buyouts. We analyse the four-year post-buyout growth and efficiency of 167 Belgian companies (of which 43 are transfers from family owned businesses) that did a buyout between 1996 and 2003. Results show that the source of a buyout (family owned buyout versus divisional buyout) has no impact on the post-buyout growth, but the presence of a PE has. PE-backed buyouts grow less in assets, but more in employees. Neither sales growth nor efficiency are different between different types of buyouts.

Keywords: Buyout; Ownership; Private Equity; Performance (search for similar items in EconPapers)
Pages: 20 pages
Date: 2007-10
New Economics Papers: this item is included in nep-cse
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Citations: View citations in EconPapers (7)

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Related works:
Working Paper: The change of ownership after a buyout: Impact on performance (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:rug:rugwps:07/484

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