Not logged in.

Quick Search - Contribution

Contribution Details

Type Master's Thesis
Scope Discipline-based scholarship
Title Long-Term Performance of IPOs and the Effect of Private Equity: An Analysis in Germany and Switzerland
Organization Unit
Authors
  • Fabrice Zosso
Supervisors
  • Per Nils Anders Östberg
Language
  • English
Institution University of Zurich
Faculty Faculty of Business, Economics and Informatics
Number of Pages 45
Date 2016
Abstract Text The goal of this study is to examine the influence of private equity firms on the long-term aftermarket performance of IPOs by analyzing particular firm characteristics of private equity-backed and non-private equity-backed IPOs at the time of the offer for Germany and Switzerland. Private equity firms and their value creation model experienced a growing influence and media attention in Continental Europe over the last years. Although private equity firms have been a source of capital for decades in the US and in the UK, the role of private equity was rather small in other European countries until the mid-1990s. Since the global financial crisis and the fact that traditional lenders had to adapt to new regulatory frameworks, private equity firms play an even more important role in corporate financing. This higher activity of private equity firms has a direct effect on the IPO market with an increase in private equity-backed IPOs. Many studies in the US and in the UK show that private equity firms are able to create value in the long-term by making their portfolio companies operationally and financially more efficient. It is reasonable to expect that such value creation initiatives put in place during the time a company is under private equity control will be maintained for some time after an exit through an IPO. This is even more the case since private equity firms are responsible for the terms and the timing of the IPO and continue to be involved for a considerable time after the floating of the portfolio company. The continuous involvement beyond the date of the IPO may lead to a superior long-term performance of private equity-backed IPOs compared to IPOs that are not backed by a private equity firm.
PDF File Download
Export BibTeX