Buy-out literature suggests that secured creditors will recoup substantial proportions of the funds they extend to finance the initial buy-out. This paper uses a unique dataset of 42 failed MBOs to examine the extent of credit recovery by secured lenders under UK insolvency procedures and the...

This paper examines the magnitude and the sources of the expected shareholder gains in UK public to private transactions (PTPs) in the second wave from 1997-2003. Pre-transaction shareholders on average receive a premium of 40% and the share price reaction to the PTP announcement is about 30%....

Many of today's best innovations – the ones that have created powerhouse companies and have transformed industries, regions and society itself – started as a discovery in a lab. Firms that know how to turn a promising discovery into a viable product gain a tremendous competitive advantage....

This paper provides the first comparative examination of the consequences of leveraged buyouts (LBOs) and traditional corporate acquisitions on employment and wages using a uniquely constructed panel data set covering the period 1996-2006. Employing propensity score matching combined with...

Using a hand collected data set of 122 buy-outs, this paper presents the first analysis of the impact effects of public to private transactions in the UK during a period (1998-2004) in which PTPs have become a significant part of the market for corporate control. We find that performance...

Unions, private equity practitioners and policy-makers are all concerned with the effect that private equity finance and LBOs (Leveraged Buyouts) have on employment. Unions are concerned with job destruction whilst practitioners argue they create jobs. Using a panel of 533 LBOs observed over the...

Using a sample of 236 UK companies that went from public to private (PTP) company status during 1997 to 2005 and a control sample of similar firms not going private, we study, with logistic regression methodology, the impact of bankruptcy risk measured by their default probability, estimated...

A largely neglected question in the literature on private equity investing is how the competitive environment influences the activities of private equity firms. In this study, we examine the impact of market concentration and interfirm networking through syndication on the price private equity...

The differences between the information used for the pre-investment valuation and the valuation methods used by venture capital investors in five countries (US, UK, France, Belgium and Holland) are empirically studied. The analysis is based on postal questionnaire surveys of representative...