Long-term performance of private equity backed
: mergers and acquisitions

  • Afonso Filipe dos Reis Estorninho Bayan Ferreira (Student)

Student thesis: Master's Thesis

Abstract

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 Award30 Jun 2022
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorPramuan Bunkanwanicha (Supervisor) & José Faias (Supervisor)

Designation

  • Mestrado em Finanças

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