This paper investigates inorganic growth strategies in PE buyouts where the portfolio firm, which has been acquired in the initial buyout, serves as a platform for subsequent add-on acquisitions. We analyze a comprehensive sample of 9,548 buyouts and 4,937 add-on acquisitions spanning 16 years...

This paper uses GLOBE's performance orientation (PO) dimension to investigate the relationship between national culture and private equity (PE) performance. We argue that high PO has negative performance implications as it provides the lowest potential for portfolio firms to benefit from a...

Using a dataset of 1,149 global private equity transactions, we find that cross-border buyouts are associated with significantly higher valuation multiples than domestic ones. We attribute this finding to informational disadvantages of foreign acquirers. Consistent with this idea, we find that...

The tax shield as present value of debt-related tax savings plays an important role in firm valuation. Driving the risk of future debt levels, the firm’s strategy to adjust the absolute debt level to future changes of the firm value, labeled as (re-) financing policy, affects the value of tax...

We study the impact of PE firm and buyout characteristics on default probability employing a Cox proportional hazards model to a global sample of 5,093 buyouts between 1997 and 2012. Our results indicate that investments of generalists have lower default probability than those of specialists....

Stylized facts suggest that strategic acquirers can pay for synergies, while private equity (PE) firms cannot because of the missing operating fit with the portfolio company. However, if PE firms initiate buy-and-build strategies, there is potential for an operating fit between the portfolio...

Dieser Beitrag analysiert den Wertbeitrag fremdfinanzierungsbedingter Steuervorteile (Tax Shield)unter realistischen Bedingungen (keine Negativsteuer; mögliche Insolvenz) für unterschiedlicheFinanzierungspolitiken. Zusätzlich wird der Effekt der sogenannten Zinsschranke auf den Wert desTax...

Dieser Beitrag analysiert den Wertbeitrag fremdfinanzierungsbedingter Steuervorteile (Tax Shield) unter realistischen Bedingungen (keine Negativsteuer; mögliche Insolvenz) für unterschiedliche Finanzierungspolitiken. Zusätzlich wird der Effekt der sogenannten Zinsschranke auf den Wert des Tax...