Management Buy-Outs occur when the managers of a company buy the company from its owners, namely the shareholders. Where such a company is a listed public company, the transaction is known as "going private. 11 The critics allege that this type of buy-out leads to irreconcilable conflicts of interests, a breach of fiduciary duties and to insider trading by the directors. For this reason Management Buy-Outs should be prohibited or alternatively, regulated to such an extent as to make them virtually unworkable. It is submitted that these conflicts are not irreconcilable and that they are no different to the myriad of other conflicts which arise out of the promotion, incorporation and the operation of a company. Both statute and the common law effectively deal with most of the critics' apprehensions without necessarily prohibiting the transactions giving rise to them. / Private Law / LL.M

Denna studie undersöker huruvida Private Equity-bolag lyckas skapa bestående operationellt värde i förvärvade portföljbolag. Studien beaktar mått som reflekterar utvecklingen för olika intressentgrupper i syfte att åskådliggöra Private Equity-bolagens sammantagna bidrag till värdeskapande. Undersökningen är av kvantitativ karaktär och är baserad på ett urval av 19 svenska bolag som under åren 1999-2008 förvärvats och avyttrats av ett Private Equity-bolag. Studien genomförs genom att studera utvecklingen av finansiella nyckeltal samt därtill kompletterande mått för intressenters välstånd under perioden mellan förvärv och avyttring samt tre år efter avyttring. För att justera för makroekonomiska och branschövergripande fluktuationer har portföljbolagens utveckling jämförts med en jämförelsegrupp bestående av branschkonkurrenter. Den sammanvägda slutsatsen är att den begränsade positiva utveckling vi observerar under holdingperioden gradvis försämras under de första tre åren efter avyttring. Ur ett intressentperspektiv konstateras att ingen intressentgrupp drabbas av direkta försämringar vare sig under holdingperioden eller tre år därefter.

The private equity industry has had a fluctuating history. In the years between 2003 and  2007 the private equity industry expanded tremendously, yet in 2008 a financial turmoil  caused significant deviation in the activity of the industry. During the credit crunch the  liquidity in the market decreased affecting the sources of capital available. When several  firms compete about the capital available, fundraising becomes increasingly difficult and  competition intensifies. Sweden is one of the largest private equity markets in Europe and  has among the Nordic countries been able to raise the largest amount of funds. The  purpose of this study is to examine the fundraising process implemented by private equity  firms, nevertheless the relationship that emerges between the fund manager and the  investor. The authors’ objective is to provide an adequate interpretation of the private  equity industry in Sweden.   The authors have implemented a qualitative method, as the objective has been to obtain a  profound picture of how private equity firms manage their fundraising. The abductive  approach has been used in order to collect empirical data and semi-structured interviews  have been carried out with representatives from four private equity firms. In addition, a  smaller survey has been performed with two institutional investors to add to the objectivity.  Subsequently, the empirical data has been analysed in regards to theory and compared in  relation to the sources to end up in a conclusion.  The authors have through the study concluded that private equity firms in Sweden with a  focus in buyouts not have a common fundraising model. Private equity funds are selective  in their choice of investors and prefer professional, loyal investors with a long-term  perspective and strong capital base. It has from the analysis emerged that good reputation,  history, team and experience is valuable in fundraising. Firms that are successful in their  operations and management appeal to investors. The investors are typically institutionalised  and invest in different asset classes, hence the diversification is mainly in the hands of the  investor.

Thesis (M.P.A.)--University of Hong Kong, 2003. / Includes bibliographical references. Also available in print.

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Purpose: The purpose of this paper is to study how Swedish portfolio companies perform after being exited by the PE-company. Through the perspective of the portfolio company, we follow how well they maintain the created value and if there is a difference in performance depending of different exit strategies. Theory: The study is based on theories regarding corporate governance, the principal-agent theory and the tax-shield theory. Method: To perform this study we have used a quantitative and deductive research approach. We compare the portfolio companies pair-wise with themselves during another time period. We then test if there is a difference in performance comparing key figures. Results: Data has been collected from 480 annual reports covering a total of 60 portfolio companies. The results consist of three different key figures from every year for each portfolio company. Analysis: The tests show a few statistically significant changes in performance when making comparisons regarding the different points in time. Generally, portfolio companies exited 2003-2005 performs better than those exited 2006-2011. The portfolio companies exited during 2006-2008 showed significant decrease in two out of the three key figures after being exited. Conclusion: The results show that portfolio companies perform differently depending on when they are exited, which is natural considering constant macro-economic changes. There was no significant difference in performance when using exit method as the dependent variable. / Syfte: Syftet med studien är att undersöka hur svenska portföljbolag utvecklas efter avyttring, samt att ur portföljbolagets perspektiv följa upp hur väl dessa bibehåller det värde som skapats och om det finns skillnad i prestationer portföljbolagen emellan i förhållande till exitmetod. Teori: Corporate governance, principal-agentteorin, teorin om skattesköld. Metod: Studien genomförs med en kvantitativ metod och en deduktiv ansats. Portföljbolagen jämförs parvis med sig själva vid olika tidsperioder och testas med hypoteser för att undersöka om de skiljer sig i de nyckeltal som mäts. Empiri: Empirin består av 480 årsredovisningar från 60 portföljbolag. Ur dessa har tre olika nyckeltal tagits fram för analys. Alla siffror som använts i studien går att finna bland bilagorna. Analys: Testen ger att antal signifikanta resultat på förändring tidpunkterna emellan. Generellt presterar portföljbolag avyttrade mellan 2003-2005 bättre än de som avyttrats 2006-2011. Perioden 2006-2008 visade negativ signifikant utveckling på två av de tre nyckeltalen som uppmätts. Slutsats: Empirin visar att portföljbolag utvecklas olika beroende på när de avyttrats, vilket är en given effekt av att det makroekonomiska klimatet ständigt förändras. Det gick inte att utläsa någon prestationsskillnad portföljbolagen emellan när exitmetod sattes som beroende variabel.

Thesis (MBA)--Stellenbosch University, 2005. / ENGLISH ABSTRACT: This study project explains the theory of Leveraged-Buy-Outs and describes the different financial tools than can be used. Special emphasis is laid in the capital structure of a Leveraged-Buy-Out and its impact on the return for the investor. The theory is then put in perspective by giving insight in the case study of the Cognis Group, a speciality chemicals company, based in Germany. It was sold to Private Equity companies in 2001 and since then underwent various refinancing including the issuing of High Yield Bonds and the issuing of Payment-In-KindNotes. / AFRIKAANSE OPSOMMING: Die teorie rakende gehefboomde bestuuroornames en die gebruik van verskillende finansiele instrumente by bestuursoornames word in hierdie werkstuk beskryf. Klem word gelê op die impak wat 'n verandering in die kapitaalstruktuur van die maatskappy op die belegger kan hê as gevolg van 'n gehefboomde bestuursoorname. Die teorie word toegelig deur te vervvys na die Cognis Groep maatskappye in Duitsland as gevallestudie. Die maatskappy het 'n bestuursoorname ondergaan in 2001 asook verskeie veranderinge in die kapitaalstruktuur daarna waar onder andere gebruik gemaak was van lae gehalte effekte.

Paper concentrates on issues regarding Leveraged Buyout transactions. It briefly depicts most common structure of transactions and means of financing. Substantial space is dedicated to two main participants on leveraged buyouts; investment banks and private equity funds. Instead on focusing on thoroughly described financing of the acquisition via secured bank loans we dedicate space in the thesis to mezzanine finance and high yield bonds. Second part of the thesis analysis latest development in the two main and most active regions regarding mergers and acquisition activity (Europe and USA) and compares Central Europe with it. Although capital markets developed substantially over past decades they are still lagging significantly former.

This cumulative dissertation aims to complement existing literature with insights on two topics gaining strong importance in the Private Equity Industry: 1) cross-border investments and 2) co-investments with portfolio firm management in times of uncertainty. Results in paper on cross-border investments suggest that the physical presence of a local office of PE firms can actually make a difference for foreign investments. With a local office, operating performance of PE firms is higher after the buyouts. Local offices are especially beneficial for performance the higher the perceived foreignness between PE firm and portfolio firm is. In addition, PE firms increase deal flow after a local office opening, do less syndicates and have higher deal volumes. Respective results imply it is worth in future research to differentiate between pure cross-border deals and deals operated through a local office. The forth paper sheds light on the positive relationship between management buyouts (MBOs) and economic policy uncertainty. Analyses indicate that access to information is a relevant channel for higher propensity of MBOs in uncertain times.:1 Introduction 1.1 Trends in private equity industry 1.2 Overview of essays 2 The Cross-Border Buyout Next Door 2.1 Introduction 2.2 Theoretical background 2.3 Data 2.4 Operating performance results 2.5 Insights from semi-structured interviews 2.6 Conclusion 3 Opening a Local Office - PE Firms' Engine for International Expansion? 3.1 Introduction 3.2 Theoretical background 3.3 Sample and data 3.4 Determinants of office openings 3.5 Impact of local offices 3.6 Conclusion 3.A Appendices 4 Entrepreneurial Activity in Times of Uncertainty: The Case of Management Buyouts 4.1 Introduction 4.2 Literature review and hypotheses 4.3 Material and methods 4.4 Results and discussion 4.5 Conclusions 4.A Appendices References

People who live in mobile homes have heightened vulnerability to disasters, due in part to mobile homes increasingly occupying high-hazard risk lands and the precarious ownership status known as divided-tenure. Divided-tenure is when an individual owns a mobile home and rents the land underneath. To identify the challenges associated with divided-tenure and disaster recovery from a policy perspective, this study analyzed the content of key HUD policies and performed a comparative policy analysis of purchase opportunity laws (requirements of landowners to give mobile homeowners an opportunity to purchase the property their home resides on) in three states: California, Florida, and New York. Content analysis indicated few direct references to mobile homes. Inconsistencies and confusing messaging were found in the existing federal guidance. The lack of consistent terminology and guidance on addressing divided-tenure, limits mobile homeowner's options for disaster recovery, including eligibility for federal disaster aid and potentially participation in relocation or buyout programs. The three selected states' purchase opportunity laws reviewed in this study were rated as weak. Policies lacked alignment with federal documents and opportunities for mobile homeowners were difficult to navigate. A pathway to land ownership could give mobile homeowners more control over their disaster recovery options, but current laws still limit that ability. This study and future work have the potential to help mobile homeowners, an understudied yet growing population, experience a more equitable disaster recovery, which currently is lacking, based on the reviewed federal and state policies.