On secondary buyouts

• 成果类型: Article
• 署名作者: Degeorge, Francois; Martin, Jens; Phalippou, Ludovic
• 署名单位: Swiss Finance Institute (SFI); Universita della Svizzera Italiana; University of Amsterdam; University of Oxford; University of Oxford
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2015.08.007
• 发表日期: 2016
• 页码: 124-145
• 关键词: private equity; buyouts; performance; Secondary buyouts

摘要

Private equity firms increasingly sell companies to each other in secondary buyouts (SBOs), raising concerns which we examine using novel data sets. Our evidence paints a nuanced picture. SBOs underperform and destroy value for investors when they are made by buyers under pressure to spend. Investors then reduce their capital allocation to the firms doing those transactions. But not all SBOs are money-burning devices. SBOs made under no pressure to spend perform as well as other buyouts. When buyer and seller have complementary skill sets, SBOs outperform other buyouts. Investors do not pay higher total transaction costs as a result of SBOs, even if they have a stake in both the buying fund and the selling fund. (C) 2015 Elsevier B.V. All rights reserved.