Private Equity Portfolio Company Performance During The Global Recession

By N. Wilson, Mike Wright, Donald S. Siegel, L. Scholes. 2012

117 citations recorded by the source corpus.

We assess the recent economic and financial performance of U.K. private equity (PE) backed buyouts. Our empirical evidence, which is based on thousands of transactions, reveals that PE-backed buyouts achieved superior economic and financial performance in the period before and during the recent global recession, relative to comparable firms that did not experience such transactions. Our regression results imply positive differentials of 5–15% in productivity and approximately 3–5% in profitability for buyout firms, relative to non-buyout firms. Another key finding is that revenue and employment growth for PE- backed firms were positive during the sample period.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/0d828316b40da25e2b4a78a11059dd94bd1b5d8e

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Citations in the corpus

What do we know about entrepreneurial finance and its relationship with growth? (2015, background): “Analyses of the population of UK firms over the period 1995–2012 find a consistent pattern of PE-backed buyouts with higher growth rates than non-PE-backed buyouts for the first four years post buyout, especially in terms of value added (Wilson and Wright, 2013; Wilson et al., 2012).”