Agency, Strategic Entrepreneurship, and the Performance of Private Equity–Backed Buyouts

By Miguel Meuleman, Kevin Amess, Mike Wright, L. Scholes. 2009

215 citations recorded by the source corpus.

Agency theory has focused on buyouts as a governance and control device to increase profitability, organizational efficiency, and limited attention to growth. A strategic entrepreneurship view of buyouts incorporates upside incentives for value creation associated with growth as well as efficiency gains. In this paper, we develop the complementarity between agency theory and strategic entrepreneurship perspectives to examine the performance implications for different types of buyouts. Further, we study how the involvement of private equity (PE) firms is related to the performance of the post–buyout firm. These issues are examined for a sample of 238 PE–backed buyouts in the UK between 1993 and 2003. Implications for theory and practice are suggested.

Subfields: Accounting, Management of Technology and Innovation

View Paper: https://www.semanticscholar.org/paper/44c5feee8afddb8e1197485c048c63cbb44b7b08

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In Accounting

In Management of Technology and Innovation

Citations in the corpus

What do we know about entrepreneurial finance and its relationship with growth? (2015, background): “Growth was greater in buyouts funded by more experienced PE firms with closer involvement in their portfolio companies (Meuleman et al., 2009).”
Identification of domains for a new conceptual model of strategic entrepreneurship using the configuration approach (2011, background): “Among other things, such combined conceptual models have been termed as models of entrepreneurial orientation, resource-based view (Droege and Dong, 2008), agency theory and entrepreneurial governance and control (Audretsch et al., 2009; Meuleman et al., 2009).”
The value added by government venture capital funds compared with independent venture capital funds (2013, background): “In so doing, we exclude from the analysis later-stage deals that have markedly different investment objectives and practices from early-stage deals (Bertoni et al., 2012c; Meuleman et al., 2009; Wright et al. 2000).”
Crowdfunding social ventures: a model and research agenda (2013, unknown): “Equity-based CF does therefore come at a much higher cost for the ventures, but perhaps contrary to the traditional theories less in a monetary sense but more so in terms of control, governance and stewardship (Meuleman et al. 2009; Williamson 1988).”