Private equity portfolio company performance during the global recession

Nick Wilson, Mike Wright, Donald Siegel, Louise Scholes

Research output: Contribution to journalArticle

41 Citations (Scopus)

Abstract

We assess the recent economic and financial performance of U.K. private equity (PE) backed buyouts. Our empirical evidence, which is based on thousands of transactions, reveals that PE-backed buyouts achieved superior economic and financial performance in the period before and during the recent global recession, relative to comparable firms that did not experience such transactions. Our regression results imply positive differentials of 5-15% in productivity and approximately 3-5% in profitability for buyout firms, relative to non-buyout firms. Another key finding is that revenue and employment growth for PE- backed firms were positive during the sample period.

Original languageEnglish (US)
Pages (from-to)193-205
Number of pages13
JournalJournal of Corporate Finance
Volume18
Issue number1
DOIs
StatePublished - Feb 1 2012
Externally publishedYes

Fingerprint

Company performance
Global recession
Private equity
Economic performance
Financial performance
Buy-outs
Empirical evidence
Profitability
Employment growth
Productivity
Revenue growth
Buy-out

Keywords

  • Employment
  • Financial performance
  • Global recession
  • Management buyouts
  • Private equity
  • Total factor productivity

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Economics and Econometrics
  • Strategy and Management

Cite this

Private equity portfolio company performance during the global recession. / Wilson, Nick; Wright, Mike; Siegel, Donald; Scholes, Louise.

In: Journal of Corporate Finance, Vol. 18, No. 1, 01.02.2012, p. 193-205.

Research output: Contribution to journalArticle

Wilson, Nick ; Wright, Mike ; Siegel, Donald ; Scholes, Louise. / Private equity portfolio company performance during the global recession. In: Journal of Corporate Finance. 2012 ; Vol. 18, No. 1. pp. 193-205.
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