Secondary buy-outs mechanisms and performances: a quantitative analysis of operating efficiency,profitability and return on investment.
In this paper we provide a description of secondary buy-outs mechanisms, and their evolution in regards to first round buy-outs. While some additional motives are identified, introducing the possibility of performance improvement through the change in ownership structure, we analyse the evolution of...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2010
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| Online Access: | https://eprints.nottingham.ac.uk/24122/ |
| _version_ | 1848792706923364352 |
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| author | Souliez, Harold G G |
| author_facet | Souliez, Harold G G |
| author_sort | Souliez, Harold G G |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | In this paper we provide a description of secondary buy-outs mechanisms, and their evolution in regards to first round buy-outs. While some additional motives are identified, introducing the possibility of performance improvement through the change in ownership structure, we analyse the evolution of some performance indicators. We
scanned a 6,633 UK secondary buy-outs database between 2000 and August 2010, as to identify a 108-exited secondary buy-out sample (2000-2009 period). We find conclusive
evidence that operating performance, profitability and return on investment changes from first round buy-outs to secondary buy-outs are negative. However secondary buy-
outs still out-perform industry peers. Positive influence of private equity backing remains in secondary buy-outs. Nevertheless similar impact of private equity syndication is limited – it only seems to significantly increase resort to leverage. We also identified – in a limited extent – the negative first round buy-outs’ length relationship
and the positive secondary buy-outs’ length relationship with secondary buy-outs performance indicator. This suggests that exit through secondary buy-outs only takes
place if neither flotation nor trade sale are possible. In addition, the more time allowed for secondary buy-out mechanisms implementation, the greater operating performance and profitability improvements. |
| first_indexed | 2025-11-14T18:48:40Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-24122 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:48:40Z |
| publishDate | 2010 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-241222022-03-21T16:08:05Z https://eprints.nottingham.ac.uk/24122/ Secondary buy-outs mechanisms and performances: a quantitative analysis of operating efficiency,profitability and return on investment. Souliez, Harold G G In this paper we provide a description of secondary buy-outs mechanisms, and their evolution in regards to first round buy-outs. While some additional motives are identified, introducing the possibility of performance improvement through the change in ownership structure, we analyse the evolution of some performance indicators. We scanned a 6,633 UK secondary buy-outs database between 2000 and August 2010, as to identify a 108-exited secondary buy-out sample (2000-2009 period). We find conclusive evidence that operating performance, profitability and return on investment changes from first round buy-outs to secondary buy-outs are negative. However secondary buy- outs still out-perform industry peers. Positive influence of private equity backing remains in secondary buy-outs. Nevertheless similar impact of private equity syndication is limited – it only seems to significantly increase resort to leverage. We also identified – in a limited extent – the negative first round buy-outs’ length relationship and the positive secondary buy-outs’ length relationship with secondary buy-outs performance indicator. This suggests that exit through secondary buy-outs only takes place if neither flotation nor trade sale are possible. In addition, the more time allowed for secondary buy-out mechanisms implementation, the greater operating performance and profitability improvements. 2010-09-24 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/24122/1/Secondary_buy-outs_mechanisms_and_performances.pdf Souliez, Harold G G (2010) Secondary buy-outs mechanisms and performances: a quantitative analysis of operating efficiency,profitability and return on investment. [Dissertation (University of Nottingham only)] (Unpublished) |
| spellingShingle | Souliez, Harold G G Secondary buy-outs mechanisms and performances: a quantitative analysis of operating efficiency,profitability and return on investment. |
| title | Secondary buy-outs mechanisms and performances: a quantitative analysis of operating efficiency,profitability and return on investment. |
| title_full | Secondary buy-outs mechanisms and performances: a quantitative analysis of operating efficiency,profitability and return on investment. |
| title_fullStr | Secondary buy-outs mechanisms and performances: a quantitative analysis of operating efficiency,profitability and return on investment. |
| title_full_unstemmed | Secondary buy-outs mechanisms and performances: a quantitative analysis of operating efficiency,profitability and return on investment. |
| title_short | Secondary buy-outs mechanisms and performances: a quantitative analysis of operating efficiency,profitability and return on investment. |
| title_sort | secondary buy-outs mechanisms and performances: a quantitative analysis of operating efficiency,profitability and return on investment. |
| url | https://eprints.nottingham.ac.uk/24122/ |