AbstractsBusiness Management & Administration

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

by Inês Seixas Fontoura

Institution: RCAAP
Year: 2014
Keywords: Buyouts; Acquisitions; Private Equity; Performance
Record ID: 1318295
Full text PDF: http://www.rcaap.pt/detail.jsp?id=oai:repositorio.ucp.pt:10400.14/15632


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.