TY  - CHAP
U1  - Buchbeitrag
A1  - Hammer, Benjamin
A1  - Härtel, Nils Hendrik
A1  - Naiem, Suleiman
A1  - Schwetzler, Bernhard
ED  - Klein, Tony
ED  - Loßagk, Sven
ED  - Straßberger, Mario
ED  - Walther, Thomas
T1  - Private equity investments and value creation in small and medium-sized enterprises
T2  - Modern finance and risk Management : Festschrift in Honour of Hermann Locarek-Junge (Transformations in banking, finance and regulation ; volume 4)
N2  - This chapter examines the enterprise value growth of private equity (PE)-backed buyouts in small and medium-sized enterprises (SMEs). Using a comprehensive sample of PE buyouts from 1997 to 2016 in 59 countries, we find that enterprise value growth rates are significantly higher if the portfolio firm is a small or medium-sized enterprise prior to the buyout. These results also hold for subsequent buyout rounds, i.e., the enterprise value growth of both the primary and secondary buyout is higher if the portfolio firm is a SME prior to the initial buyout. Moreover, we show that good access to finance, management buyouts, and SME investments by large funds have a negative effect on SMEs’ enterprise value growth, whereas a PE firm’s venture capital focus reinforces the positive enterprise value growth of SME portfolio firms. Our results are robust to different tests designed to mitigate selection concerns.
Y1  - 2022
SN  - 978-1-80061-190-0
SB  - 978-1-80061-190-0
U6  - https://doi.org/10.1142/9781800611917_0007
DO  - https://doi.org/10.1142/9781800611917_0007
SP  - 137
EP  - 170
PB  - World Scientific
CY  - Singapur
ER  -