O processo de tomada de decisão e os critérios de selecção na Inter-Risco, S.C.R., S.A.

: origination, screening e avaliação de oportunidades de investimento

Abstract

The decision-making process and the investments’ selection criteria among private equity firms have been broadly studied by the academic community since 1970. However, the research found for the Portuguese private equity market is scarce and general, i.e., it doesn’t take into account the differences among private equity firms regarding their investment strategies. This study intends to verify the relation between the findings of academic research on this matter and the practices of a Portuguese private equity player, Inter- Risco, specialized in buyout investments, with a perspective of sectoral consolidation. Special focus is given to the phases of origination, screening and evaluation of investment opportunities. The study was undertaken through a period of insertion in the organization, participating in its daily activities. The findings suggest that the Inter-Risco’s decision-making process is in accordance with the models proposed by the academic research and equivalence relations are established between the different phases. However, the process appears to be mora interactive and dynamic than what is usually portrayed in previous models. Regarding the criteria applied during the screening and evaluation of investment opportunities for buyouts, the results indicate that market characteristics are more relevant than the management team characteristics, going against what is stated by several authors. Nonetheless, when we analyze the case of expansion investments, the management team skills and references assume a prominent role. Finally, the divestment strategy appears to be one of the fundamental criteria considered by the portuguese private equity firm, being in accordance with the academic research on the portuguese private equity market.

Date of Award	6 Mar 2013
Original language	Portuguese
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Ricardo Cunha (Supervisor)