How can private equity firms create value through improvements in the operating performance?
Name
921303568-MIT.pdf
Description
Full printable version
Size
4.71 MB
Format
Adobe PDF
Checksum (MD5)
dca96ad2a8da03ab54c6e4bfcb2573c7
Author(s)
Bassoulet, Arnaud
Advisor(s)
Donald Sull.
Alternative Title
Can private equity firms continue to increase value creation through superior improvements in the operating performance?
Date Issued
2015
Publisher
Massachusetts Institute of Technology
Abstract
This thesis is an attempt to measure the impact that the Private Equity companies can have on their portfolio companies' operational performance. We try to determine whether companies under LBO can over-perform listed companies in terms of operating improvements. We firstly use Kaplan's work (1989a) to evidence that on average, companies under LBO successfully over-perform benchmarks in the 1980s. We also present the key drivers accounting for the superior operating performance. In addition, we highlight some potential biases that may impact Kaplan's findings. We then examine whether those findings still hold for the most recent wake of Private Equity transactions. We find that operating improvements remain large but are in line with the industry average. Eventually, we focus on the largest and most mature Private Equity firms that have managed to persistently generate operational improvements and study their operating business models and key initiatives to identify best practices.
Description
Thesis: S.M. in Management Research, Massachusetts Institute of Technology, Sloan School of Management, 2015.
Cataloged from PDF version of thesis.
Includes bibliographical references (page 48).
Subjects
Sloan School of Management.
MIT Department
Sloan School of Management
Terms of Use
M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.
Persistent DSpace Link
