International Evidence on Value Creation in Private Equity Transactions

Journal of Applied Corporate Finance, 2015, Forthcoming

Posted: 17 Sep 2014 Last revised: 19 Dec 2015

See all articles by Benjamin Puche

Benjamin Puche

Technische Universität München (TUM) - Center for Entrepreneurial and Financial Studies

Reiner Braun

Technische Universität München (TUM) - TUM School of Management; Center for Entrepreneurial and Financial Studies

Ann‐Kristin Achleitner

Technische Universität München - Center for Entrepreneurial and Financial Studies

Date Written: August 29, 2014

Abstract

Understanding value creation at the transaction level is at the heart of explaining private equity (PE) returns. Taking advantage of a proprietary sample of 2,029 international buyout deals executed between 1984 and 2013 we provide detailed evidence on financial, market and operational value creation drivers. Additionally, we unravel the differences in value creation between regions, industries, transaction sizes and over time, providing limited and general partners with the opportunity to compare their past transactions with those of their respective peer groups.

Keywords: private equity, value creation drivers, leveraged buyouts

JEL Classification: G23, G24, G31, G32, G34

Suggested Citation

Puche, Benjamin and Braun, Reiner and Achleitner, Ann-Kristin, International Evidence on Value Creation in Private Equity Transactions (August 29, 2014). Journal of Applied Corporate Finance, 2015, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2496899 or http://dx.doi.org/10.2139/ssrn.2496899

Benjamin Puche (Contact Author)

Technische Universität München (TUM) - Center for Entrepreneurial and Financial Studies ( email )

Arcisstr. 21
München, 80333
Germany

HOME PAGE: http://www.cefs.de

Reiner Braun

Technische Universität München (TUM) - TUM School of Management ( email )

Arcisstr. 21
Munich, Deutschland 80333
Germany
+498928925181 (Phone)
+498928925188 (Fax)

HOME PAGE: http://www.ef.wi.tum.de/

Center for Entrepreneurial and Financial Studies ( email )

Arcisstrasse 21
Munich, DE 80333
Germany

Ann-Kristin Achleitner

Technische Universität München - Center for Entrepreneurial and Financial Studies ( email )

Arcisstr. 21
Munich, D-80290
Germany
+49 89 289 25181 (Phone)

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