Full Text Available

Access Repository
Note: Clicking the button above will open the full text document at the original institutional repository in a new window.
Cover Image

Do Public-to-Private Leveraged Buyouts Result in Improved Operating Performance? Evidence from the United Kingdom

This study investigates the changes in the operating performance of public-to-private leveraged buyouts (LBOs) backed by one or more private equity firms. For this purpose, this dissertation focuses on a sample of 65 completed public-to-private LBOs in the United Kingdom, which were finalised betwee...

Full description

Saved in:
Main Author: Asci, Ceylan Cemre
Other Authors: Toerien, Francois
Format: Thesis
Language:English
Published: Department of Finance and Tax 2020
Subjects:
Financial Management
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1867613206836412416
access_status_str Open Access
author Asci, Ceylan Cemre
author2 Toerien, Francois
author_browse Asci, Ceylan Cemre
Toerien, Francois
author_facet Toerien, Francois
Asci, Ceylan Cemre
author_sort Asci, Ceylan Cemre
collection Thesis
description This study investigates the changes in the operating performance of public-to-private leveraged buyouts (LBOs) backed by one or more private equity firms. For this purpose, this dissertation focuses on a sample of 65 completed public-to-private LBOs in the United Kingdom, which were finalised between 2003 and 2015, and exited by 2018. Specifically, the changes in operating performance in terms of EBITDA/sales, EBIT/sales and EBITDA/total assets, as measured directly and relative to the industry median, before the LBO and at exit by the equity provider, is analysed. A regression methodology from the literature is used to determine the impact of various transaction and company-specific attributes on operating performance changes, based on the shareholder-related agency costs and free cash flow/benefits of debt theories. Surprisingly, the overall picture indicates a negative operating performance change of going-private LBOs in the post-buyout period. The main factors explaining the changes in operating performance seem to be changes in leverage. On the other hand, the hypotheses relating to improved management incentives and improved shareholder monitoring are not supported by the results, as these factors seem to have little to no effect on the operating performance changes related to the public-to-private LBOs in the sample.
format Thesis
id oai:open.uct.ac.za:11427/31560
institution University of Cape Town (South Africa)
language eng
last_indexed 2026-06-10T12:32:27.580Z
license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2020
publishDateRange 2020
publishDateSort 2020
publisher Department of Finance and Tax
publisherStr Department of Finance and Tax
record_format dspace
source_str UCTD — University of Cape Town Open Access Repository
spelling oai:open.uct.ac.za:11427/31560 Do Public-to-Private Leveraged Buyouts Result in Improved Operating Performance? Evidence from the United Kingdom Asci, Ceylan Cemre Toerien, Francois Financial Management This study investigates the changes in the operating performance of public-to-private leveraged buyouts (LBOs) backed by one or more private equity firms. For this purpose, this dissertation focuses on a sample of 65 completed public-to-private LBOs in the United Kingdom, which were finalised between 2003 and 2015, and exited by 2018. Specifically, the changes in operating performance in terms of EBITDA/sales, EBIT/sales and EBITDA/total assets, as measured directly and relative to the industry median, before the LBO and at exit by the equity provider, is analysed. A regression methodology from the literature is used to determine the impact of various transaction and company-specific attributes on operating performance changes, based on the shareholder-related agency costs and free cash flow/benefits of debt theories. Surprisingly, the overall picture indicates a negative operating performance change of going-private LBOs in the post-buyout period. The main factors explaining the changes in operating performance seem to be changes in leverage. On the other hand, the hypotheses relating to improved management incentives and improved shareholder monitoring are not supported by the results, as these factors seem to have little to no effect on the operating performance changes related to the public-to-private LBOs in the sample. 2020-03-11T11:37:14Z 2020-03-11T11:37:14Z 2019 2020-03-11T09:07:59Z Master Thesis Masters MCom http://hdl.handle.net/11427/31560 eng application/pdf Department of Finance and Tax Faculty of Commerce
spellingShingle Financial Management
Asci, Ceylan Cemre
Do Public-to-Private Leveraged Buyouts Result in Improved Operating Performance? Evidence from the United Kingdom
thesis_degree_str Master's
title Do Public-to-Private Leveraged Buyouts Result in Improved Operating Performance? Evidence from the United Kingdom
title_full Do Public-to-Private Leveraged Buyouts Result in Improved Operating Performance? Evidence from the United Kingdom
title_fullStr Do Public-to-Private Leveraged Buyouts Result in Improved Operating Performance? Evidence from the United Kingdom
title_full_unstemmed Do Public-to-Private Leveraged Buyouts Result in Improved Operating Performance? Evidence from the United Kingdom
title_short Do Public-to-Private Leveraged Buyouts Result in Improved Operating Performance? Evidence from the United Kingdom
title_sort do public to private leveraged buyouts result in improved operating performance evidence from the united kingdom
topic Financial Management
url http://hdl.handle.net/11427/31560
work_keys_str_mv AT asciceylancemre dopublictoprivateleveragedbuyoutsresultinimprovedoperatingperformanceevidencefromtheunitedkingdom

Similar Items