Who is the best acquirer
: private equity or industry firms?

  • Inês Sofia Sevivas Fontoura (Student)

Student thesis: Master's Thesis

Abstract

Previous research on PE firms impact and the benefits of Acquisitions have been mixed. However, their comparison has been largely neglected. This study evaluates whose assets are of most value to targets: PE or Industry firms reinforcing the need of further empirical research to better resources allocation. For a sample of 92 Buyouts and 120 Acquisitions UK targets in the mid/long-term, Acquired firms significantly over-perform Buyout targets for measures combining operational and capital efficiency. These findings are related to higher sales growth, slightly better gross margins and higher discipline of debt. Nonetheless, PE firms show a positive impact on fixed costs management and at a lower level on labor productivity and working capital managing.
Date of Award2014
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorJosé Faias (Supervisor)

Keywords

  • Buyouts
  • Acquisitions
  • Private equity
  • Performance

Designation

  • Mestrado em Gestão

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