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- Title
Fare Thee Well? An Analysis of Buyout Funds' Exit Strategies.
- Authors
Fürth, Sven; Rauch, Christian
- Abstract
This paper analyzes exit strategies of buyout funds in portfolio companies following initial public offerings (IPOs). We use a data set of 222 buyout-backed IPOs in the United States from 1999 to 2008, including hand-collected data about each exit process, to draw a detailed roadmap of buyout investors' divestment processes. Using this data, we document the timing and aggressiveness of the exit strategies, and analyze to which degree a multitude of possible determinants influence the choice of a given exit strategy. Our results indicate that buyout funds remain invested in their portfolio companies for a substantial period of time after the IPO, and that the choice of a given exit strategy depends not only upon the characteristics of each respective portfolio company, but also on the financial success of the deal from the perspective of the buyout investor.
- Subjects
BUYOUTS; GOING public (Securities); DISINVESTMENT; PORTFOLIO management (Investments); ACQUISITION of data
- Publication
Financial Management (Wiley-Blackwell), 2015, Vol 44, Issue 4, p811
- ISSN
0046-3892
- Publication type
Article
- DOI
10.1111/fima.12070