This study investigates the impact of a company's shareholder structure, particularly hedge fund ownership, on its likelihood to become target of a takeover offer. Additionally, it explores the consequences of such an offer within the context of the German takeover market. In line with prior...

This study investigates the impact of a company's shareholder structure, particularly hedge fund ownership, on its likelihood to become target of a takeover offer. Additionally, it explores the consequences of such an offer within the context of the German takeover market. In line with prior...

Secondary buyouts (SBOs) appear paradoxical because the surge in SBO activity is met with scepticism from the public and investors regarding their performance. In this paper, we undertake a comprehensive analysis of SBO performance through two distinct lenses: First, we address the prevailing...

Venture capital (VC) often involves complex equity contracts with so-called preferential rights affecting the allocation of exit proceeds among different share classes and investors. We structure exit-relevant preferential rights in a two-dimensional framework and develop a contingent claims...

Secondary buyouts (SBOs) can be viewed as an oxymoron: Booming SBO activity meets public and investor´s perception of this investments as “lemons”, claiming that first round buyers in the primary buyout (PBO) leave no potential for further value creation on the table. Using a unique back to...

B&B strategies are increasingly popular, with past studies showing them to achieve superior returns. The question of how exactly B&B strategies create value is, however, still a "black box". Relying on a unique and proprietary sample of 161 B&B buyouts with valuation details on related add-on...

This study considers the trade-off between better top management team (TMT) decision-making involving complementary perspectives and inefficiencies due to conflicts between individuals. In analyzing characteristics of 1,071 fund partners involved in 1,295 buyout deals by 117 funds, we find that...

Pre-bid target share price movements are potentially increasing the cost of takeovers and thus are seen as a detriment for the efficiency of the market for corporate control. This pa-per investigates the relationship of pre-bid stock price movements, takeover regulation and offer premium and...