The Change In Ownership After A Buyout: Impact On Performance
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.
|Date of creation:||Oct 2007|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: ++ 32 (0) 9 264 34 61
Fax: ++ 32 (0) 9 264 35 92
Web page: http://www.ugent.be/eb
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sapienza, Harry J. & Manigart, Sophie & Vermeir, Wim, 1996. "Venture capitalist governance and value added in four countries," Journal of Business Venturing, Elsevier, vol. 11(6), pages 439-469, November.
- Beuselinck, C.A.C. & Manigart, S., 2007. "Financial reporting quality in private equity backed companies : The impact of ownership concentration," Other publications TiSEM 2c9c21c1-d197-4651-a4af-a, Tilburg University, School of Economics and Management.
- Howorth, Carole & Westhead, Paul & Wright, Mike, 2004. "Buyouts, information asymmetry and the family management dyad," Journal of Business Venturing, Elsevier, vol. 19(4), pages 509-534, July.
- Beuselinck, C. & Manigart, S., 2006.
"Financial reporting quality in privaty equity backed companies: the impact of ownership concentration,"
Vlerick Leuven Gent Management School Working Paper Series
2005-23, Vlerick Leuven Gent Management School.
- Christof Beuselinck & Sophie Manigart, 2007. "Financial Reporting Quality in Private Equity Backed Companies: The Impact of Ownership Concentration," Small Business Economics, Springer, vol. 29(3), pages 261-274, October.
- C. Beuselinck & S. Manigart, 2005. "Financial Reporting Quality in Private Equity Backed Companies: The Impact of Ownership Concentration," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/343, Ghent University, Faculty of Economics and Business Administration.
- Phillippe Desbrières & Alain Schatt, 2002.
"The Impacts of LBOs on the Performance of Acquired Firms: The French Case,"
Journal of Business Finance & Accounting,
Wiley Blackwell, vol. 29(5&6), pages 695-729.
- Philippe Desbrières & Alain Schatt, 2002. "The Impacts of LBOs on the Performance of Acquired Firms:the French Case," Working Papers CREGO 1020702, Université de Bourgogne - CREGO EA7317 Centre de recherches en gestion des organisations.
- Kevin Amess & Mike Wright, 2007. "The Wage and Employment Effects of Leveraged Buyouts in the UK," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 14(2), pages 179-195.
- Ravenscraft, David J & Scherer, F M, 1987. "Life after Takeover," Journal of Industrial Economics, Wiley Blackwell, vol. 36(2), pages 147-56, December.
- Mueller, Dennis C, 1985. "Mergers and Market Share," The Review of Economics and Statistics, MIT Press, vol. 67(2), pages 259-67, May.
- Kaplan, Steven, 1989. "The effects of management buyouts on operating performance and value," Journal of Financial Economics, Elsevier, vol. 24(2), pages 217-254.
- Muscarella, Chris J & Vetsuypens, Michael R, 1990. " Efficiency and Organizational Structure: A Study of Reverse LBOs," Journal of Finance, American Finance Association, vol. 45(5), pages 1389-1413, December.
- Frank R Lichtenberg & Donald Siegel, 1989.
"The Effects Of Leveraged Buyouts On Productivity And Related Aspects Of Firm Behavior,"
89-5, Center for Economic Studies, U.S. Census Bureau.
- Lichtenberg, Frank R. & Siegel, Donald, 1990. "The effects of leveraged buyouts on productivity and related aspects of firm behavior," Journal of Financial Economics, Elsevier, vol. 27(1), pages 165-194, September.
- Frank R. Lichtenberg & Donald Siegel, 1989. "The Effects of Leveraged Buyouts on Productivity and Related Aspects of Firm Behavior," NBER Working Papers 3022, National Bureau of Economic Research, Inc.
- Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-29, May.
- Smith, Abbie J., 1990. "Corporate ownership structure and performance *1: The case of management buyouts," Journal of Financial Economics, Elsevier, vol. 27(1), pages 143-164, September.
When requesting a correction, please mention this item's handle: RePEc:rug:rugwps:07/484. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nathalie Verhaeghe)
If references are entirely missing, you can add them using this form.