Abstract
This paper examines 1,089 private equity (PE) backed and non-PE backed (pure) UK buy-outs, determinants of their survival, and their exit behaviour during the period of 1966–2004. Our results suggest that 56% of the pure sample buy-outs remained in a buy-out organisational form for at least seven years after the original buy-out transaction, thus lending support to views that buy-outs present long rather than short term form. PE backed buy-outs exhibit higher exit rates, fewer early (within 12 months) exits and fewer liquidations than their pure counterparts. Buy-outs sponsored by PE syndicates, those harvested during periods with strong market conditions and greater supply of PE funding, tend to have shorter longevity. The most notable difference between the survival experiences of PE backed and pure buy-outs is documented in IPO exits, where a significant number of pure buyouts exit early to the Alternative Investment Market (AIM).
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
