دانلود رایگان مقاله انگلیسی خرید تقسیمی توسط سهام خصوصی و بازار برای دارایی های واگذار شده - الزویر 2018

Abstract

We study the role and performance of private equity (PE) in corporate asset sales. Corporate sellers obtain significantly positive excess returns in PE deals, gains in wealth significantly greater than for intercorporate asset sales. Based on exit valuations for 98% of PE deals, we find gains in enterprise value in buyouts are significantly greater than for benchmark firms. Corporate seller excess returns are positively correlated with subsequent gains in asset enterprise value. A parsimonious auction model suggests that only restructuring capabilities of PE (not acquisition of undervalued assets) can explain the pattern of the gains generated in these PE deals.

Conclusions

In this paper we provide an analysis of private equity buyers in corporate sales of operating assets. We analyze a comprehensive sample of sales of large operating assets by listed parent firms from 1994 through 2006, and we follow the exit pattern of the private equity buyers through year-end 2017. By the end of the period, we find that 98% of the assets acquired by private equity have exited from ownership by the original private equity sponsors. We find that increases in shareholder wealth for selling parent firms at sales of these assets to private equity are on average significantly greater than for sales of assets to public or private strategic buyers. Our findings suggest that restructuring gains are the likely basis for bids by private equity in the corporate asset sales market. We evaluate the change in the enterprise value of the assets acquired by private equity for the period from acquisition to private equity exit. We find that annualized growth rates in asset enterprise values are significantly greater than for benchmark firms, suggesting the economic importance of private equity's capabilities for managing divested corporate assets. About 60% of private equity exits from these investments are through IPOs or sales to strategic buyers, while 18% of businesses sustain bankruptcy filings. We find that parent firm seller returns at the original asset sale are related to the subsequent gains in enterprise value for the asset while under private equity ownership, with parent firm sellers earning significantly greater gains in private equity deals in which exit is by an IPO or sale to a strategic buyer and significantly weaker gains when exit is by bankruptcy. Thus, private equity generates large gains in shareholder wealth for selling parent firms for assets that subsequently prove to be a rich source of increased value.