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

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dc.contributor.advisorToerien, Francois
dc.contributor.authorAsci, Ceylan Cemre
dc.date.accessioned2020-03-11T11:37:14Z
dc.date.available2020-03-11T11:37:14Z
dc.date.issued2019
dc.date.updated2020-03-11T09:07:59Z
dc.description.abstractThis 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.
dc.identifier.apacitationAsci, C. C. (2019). <i>Do Public-to-Private Leveraged Buyouts Result in Improved Operating Performance? Evidence from the United Kingdom</i>. (). ,Faculty of Commerce ,Department of Finance and Tax. Retrieved from http://hdl.handle.net/11427/31560en_ZA
dc.identifier.chicagocitationAsci, Ceylan Cemre. <i>"Do Public-to-Private Leveraged Buyouts Result in Improved Operating Performance? Evidence from the United Kingdom."</i> ., ,Faculty of Commerce ,Department of Finance and Tax, 2019. http://hdl.handle.net/11427/31560en_ZA
dc.identifier.citationAsci, C.C. 2019. Do Public-to-Private Leveraged Buyouts Result in Improved Operating Performance? Evidence from the United Kingdom. . ,Faculty of Commerce ,Department of Finance and Tax. http://hdl.handle.net/11427/31560en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Asci, Ceylan Cemre AB - 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. DA - 2019 DB - OpenUCT DP - University of Cape Town KW - Financial Management LK - https://open.uct.ac.za PY - 2019 T1 - Do Public-to-Private Leveraged Buyouts Result in Improved Operating Performance? Evidence from the United Kingdom TI - Do Public-to-Private Leveraged Buyouts Result in Improved Operating Performance? Evidence from the United Kingdom UR - http://hdl.handle.net/11427/31560 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/31560
dc.identifier.vancouvercitationAsci CC. Do Public-to-Private Leveraged Buyouts Result in Improved Operating Performance? Evidence from the United Kingdom. []. ,Faculty of Commerce ,Department of Finance and Tax, 2019 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/31560en_ZA
dc.language.rfc3066eng
dc.publisher.departmentDepartment of Finance and Tax
dc.publisher.facultyFaculty of Commerce
dc.subjectFinancial Management
dc.titleDo Public-to-Private Leveraged Buyouts Result in Improved Operating Performance? Evidence from the United Kingdom
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMCom
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