Abstract
Using the data from the website of EVCA, the European Private Equity and Venture Capital Association, we provide an analysis of the divestment transactions made by Private Equity and Venture Capital in Europe in the period from 2007 to 2013. The purpose of the research is to verify whether the amount of divestments and the selection of exit strategies are influenced by the GDP growth rate of European Union and the performance of equity markets of European Union Member States. We also highlight the importance of divestment phase, because it is only through its success that venture capital and private equity firms can realize capital gains. The analysis has demonstrated a positive correlation between divestments realized in the period considered and the GDP growth rate of European Union, as well as between the amount of disposals made during the period analyzed and the development of the Eurostoxx50 index.
Highlights
This research aims to analyze divestment transactions made by Private Equity and Venture Capital in Europe in the period from 2007 to 2013
The data used for the research were collected from the website of EVCA, the European Private Equity and Venture Capital Association
The examined data referring to the PE activity, as explained in the introductory paragraph, derive from the website of EVCA - European Private Equity and Venture Capital Association
Summary
This research aims to analyze divestment transactions made by Private Equity and Venture Capital in Europe in the period from 2007 to 2013. 4) The several exit strategies are affected by the equity markets performance of European Union countries We believe that it should firstly be made clear the difference between the private equity and venture capital activity, as understood by the doctrine and by operators from the sector within the European context. The PE and VC firms buy generally equity ownership in companies operating in innovative sectors of the economy or that want to use new technologies to produce existing goods and services or a innovative way to distribute them. The purpose of these investments is to realize capital gains by selling equity ownership at a price higher than the purchase price. We will proceed to the analysis of data to test the research hypothesis
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