The Performance of Private Equity-Backed Initial Public Offerings in Germany

51 Pages Posted: 7 Apr 2008 Last revised: 9 Dec 2014

See all articles by Christian von Drathen

Christian von Drathen

University of Texas at Dallas - Naveen Jindal School of Management

Date Written: December 12, 2007

Abstract

This paper investigates the long-term stock price performance of initial public offering (IPO) firms in Germany that were previously owned by private equity (PE) funds. A sample of 138 PE-backed IPOs (33 buyout- and 105 venture-backed) and 383 non-PE-backed IPOs between 1990 and 2007 is analysed for the long-term performance of these offerings. The analysis suggests that PE-backed IPOs outperform the stock market over the three-year term. On a risk-adjusted basis, returns are positive over a five-year post-IPO period. Within the PE-backed sample, venture capital-backed IPOs outperform buyout-backed offerings.

Keywords: initial public offerings (IPOs), private equity, leveraged buyouts (LBOs), venture capital (VC), reverse leveraged buyouts (RBLOs), stock price performance, long-term event study, Germany

JEL Classification: G12, G14, G15, G24

Suggested Citation

von Drathen, Christian, The Performance of Private Equity-Backed Initial Public Offerings in Germany (December 12, 2007). Available at SSRN: https://ssrn.com/abstract=1117182 or http://dx.doi.org/10.2139/ssrn.1117182

Christian Von Drathen (Contact Author)

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

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