Private Equity and Management Buy-outs

'A selection of very interesting perspectives on private equity from a collection of leading academics.' -- Guy Fraser-Sampson, author of Private Equity as an Asset Class 'This book is a timely and important collection of papers on the financial and real effects of private equity. It is crucial that policymakers know the evidence on these transactions, as opposed to the folklore that permeates the popular press. This comprehensive and penetrating collection of studies frames and answers the most important questions policymakers are asking about private equity.' -- Donald S. Siegel, University at Albany, SUNY, US

Edited by the late Mike Wright, formerly Professor of Entrepreneurship and Director, Centre for Management Buyout Research, Imperial College Business School, London, UK and Hans Bruining, Rotterdam School of Management, Erasmus University Rotterdam, The Netherlands

Contents: Preface PART I: INTRODUCTION 1. Private Equity and Management Buy-outs: International Trends, Evidence and Policy Implications Mike Wright and Hans Bruining PART II: THEORETICAL PERSPECTIVES 2. Entrepreneurial Growth through Privatization: The Upside of Management Buyouts Mike Wright, Robert E. Hoskisson, Lowell W. Busenitz and Jay Dial PART III: SOURCES OF BUY-OUT 3. Why do Public Firms go Private in the UK? The Impact of Private Equity Investors, Incentive Realignment and Undervaluation Luc Renneboog, Tomas Simons and Mike Wright 4. Irrevocable Commitments, Going Private and Private Equity Mike Wright, Charlie Weir and Andrew Burrows 5. Information Sharing, Price Negotiation and Management Buy-outs of Private Family-owned Firms M. Louise Scholes, Mike Wright, Paul Westhead, Andrew Burrows and Hans Bruining PART IV: ENTREPRENEURSHIP AND VALUE CREATION 6. Management Control Systems and Strategy Change in Buy-outs Hans Bruining, Marcel Bonnet and Mike Wright 7. Entrepreneurial Orientation in Management Buy-outs and the Contribution of Venture Capital Hans Bruining and Mike Wright 8. Management Buyouts and Restructuring Japanese Corporations Mike Wright, Motoya Kitamura and Robert E. Hoskisson PART V: IMPACT OF BUY-OUTS 9. Assessing the Impact of Management Buyouts on Economic Efficiency: Plant-Level Evidence from the United Kingdom Richard Harris, Donald S. Siegel and Mike Wright 10. Post-privatization Effects of Management and Employee Buy-outs Mike Wright, Trevor Buck and Igor Filatotchev 11. The Impact of Business Ownership Change on Employee Relations: Buy-outs in the UK and the Netherlands Hans Bruining, Paul Boselie, Mike Wright and Nicolas Bacon 12. The Wage and Employment Effects of Leveraged Buyouts in the UK Kevin Amess and Mike Wright PART VI: INVESTMENT REALIZATION: SUCCESS AND FAILURE 13. The Impact of Corporate Gvernance Mechanisms on Value Increase in Leveraged Buyouts Erkki Nikoskelainen and Mike Wright 14. Performance of Private to Public MBOs: The Role of Venture Capital Ranko Jelic, Brahim Saadouni and Mike Wright 15. Secured Creditor Recovery Rates from Management Buy-outs in Distress David Citron, Mike Wright, Rod Ball and Fred Rippington Index