This paper explores the impact of Private Equity funds on firms’ performance post-deal, in the period of investments made between 2011 and 2017. Further analysis is made to explore the divergence in performance for Anglo-Saxon and non-Anglo-Saxon countries. Our sample is composed of 129 deals, of which 86 are from non-Anglo-Saxon and 43 from Anglo-Saxon countries. Our results do not suggest a unanimous behavior of general overperformance from our target firms, but rather specific areas of enhanced performance. We found a statistically significant decline in profitability for Return on Assets, and EBIT margin. But in contrast, concerning operating efficiency level, we found signs of a positive increase in Sales over Employees, post-deal. Our DID regression shows evidence of a positive increase in the number of employees Finally, moving to leverage, our results show statistical significant results,expecting leverage to increase post-deal.
Date of Award | 30 Jun 2022 |
---|
Original language | English |
---|
Awarding Institution | - Universidade Católica Portuguesa
|
---|
Supervisor | Pramuan Bunkanwanicha (Supervisor) & José Faias (Supervisor) |
---|
Long-term performance of private equity backed: mergers and acquisitions
Ferreira, A. F. D. R. E. B. (Student). 30 Jun 2022
Student thesis: Master's Thesis