Value Creation in Leveraged Buyouts (eBook)

Dr. Nicolaus Loos promovierte bei Prof. Dr. Martin Hilb am IFPM Institut der Universität St. Gallen und forschte am Buyout Research Center am INSEAD. Er ist als Investment Banker für den Bereich Private Equity bei J.P. Morgan in New York, USA tätig.

Foreword I 7
Foreword II 10
Acknowledgements 12
Brief Contents 14
Table of Contents 15
List of Figures 23
List of Tables 30
List of Abbreviations 33
Abstract 36
1 Introduction 40
1.1 Background of Research 40
1.2 Problem Statement 41
1.3 Need for Study 43
1.5 Scope and Limitations 45
1.6 Organization of Research 46
2 Literature Review 48
2.1 Definitions and the Buyout Process 48
2.2 The Buyout Controversy - Alleviating Common Beliefs 56
2.3 Agency Theory of Leveraged Buyouts 58
2.4 Strategic Management View of Leveraged Buyouts 60
2.5 Value Creation in Leveraged Buyouts 62
2.6 Value Destruction in Acquisitions and Leveraged Buyouts 77
3 Methodology and Research Design 81
3.1 Research Goal of the Study 81
3.2 Research Object of the Study 83
3.3 Research Model 89
3.4 General Hypotheses 95
3.5 Performance Evaluation 95
IEV 100
3.6 Empirical Approach 106
/i 114
o 1 114
o 114
3.7 Research Methodology and Data Analysis 121
4 Empirical Part I - Market and Financial Value Drivers 126
4.1 Introduction 126
4.2 Control Population Overview 127
4.3 Leveraged Buyout Deal Performance 164
4.4 Leveraged Buyout Deal vs. Public Market & Industry Financial Performance
4.5 Leveraged Buyout Value Attribution Analysis 272
4.6 Conclusions 282
5 Empirical Part II - The GP Firm and Manager Effect 287
5.1 Introduction 287
5.2 Investment Manager and General Partner Firm Characteristics 288
5.3 Modeling the Buyout Firm Experience Effect 349
5.4 Conclusions 360
6 Empirical Part III - Buyout Strategies 362
6.1 Introduction 362
6.2 Target Company Characteristics 379
6.3 Deal Decisions and Characteristics 392
6.4 Acquisition Process and Strategic Events 406
6.5 Modelling Buyout Characteristics, Decisions and Strategic Events 415
6.6 Conclusions 423
7 Summary and Conclusions 425
7.1 Summary of Study's Key Findings 425
7.2 Contributions to Research and Applications to Practice 446
7.3 Limitations of Study and Areas of Future Research 452
8 Appendices 454
9 Bibliography 472