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

27 Pages Posted: 2 Jan 2009

See all articles by Miguel Meuleman

Miguel Meuleman

Vlerick Business School; University of Nottingham

Kevin Amess

Nottingham University Business School

Mike Wright

Nottingham University Business School

Louise Scholes

Loughborough University London

Abstract

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.

Suggested Citation

Meuleman, Miguel and Amess, Kevin and Wright, Mike and Scholes, Louise, Agency, Strategic Entrepreneurship, and the Performance of Private Equity-Backed Buyouts. Entrepreneurship Theory and Practice, Vol. 33, No. 1, pp. 213-239, January 2009. Available at SSRN: https://ssrn.com/abstract=1321541 or http://dx.doi.org/10.1111/j.1540-6520.2008.00287.x

Miguel Meuleman (Contact Author)

Vlerick Business School ( email )

Reep 1
Gent, 9000
Belgium
0032(0)92109770 (Phone)
0032(0)92109790 (Fax)

University of Nottingham

University Park
Nottingham, NG8 1BB
United Kingdom

Kevin Amess

Nottingham University Business School ( email )

Jubilee Campus
Wollaton Road
Nottingham, NG8 1BB
United Kingdom

HOME PAGE: http://www.nottingham.ac.uk/business/lizka1.html

Mike Wright

Nottingham University Business School ( email )

Jubilee Campus
Wollaton Road
Nottingham, NG8 1BB
United Kingdom
+44 115 951 5257 (Phone)
+44 115 951 5204 (Fax)

Louise Scholes

Loughborough University London ( email )

Here East
Queen Elizabeth Olympic Park
London, E15 2GZ
Great Britain

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