Loading...
Please wait, while we are loading the content...
Similar Documents
UvA-DARE ( Digital Academic Repository ) Shall we dance ? : the rationale for leveraged buyout syndication
| Content Provider | Semantic Scholar |
|---|---|
| Copyright Year | 2010 |
| Abstract | Syndicated investments are common in the private equity industry. This paper examines how management team composition might inuence LBO syndication decisions, and links both to performance. By using a unique hand-collected dataset of 947 LBO investments, we show that investment size, geographic distance, and investor experience increase syndication likelihood. Besides, management teams with engineers and MBA graduates are prone to syndication. More speci cally, Harvard MBAs tend to work with each other while Columbia MBAs are more likely to syndicate with each other as well as with engineers. We nd a non-linear relationship between syndication and performance, probably due to di¤erent inherent nature of deals. MBA graduates seem to a¤ect performance in non-syndicated deals, but not in syndicated ones. It thus suggests that MBAs are good at pre-deal screening, and might further explain why they would seek outside expertise when needed. Finally, we nd that the strongest syndication match that enhances value is the Harvard MBA-and-Harvard MBA pair. Hence, Harvard MBAs may syndicate with each other because a personal acquaintance enables a better match of skills. For other teams, syndication is likely for the purpose of diversi cation or future deal reciprocity. Keywords: Leveraged Buyouts, Syndication, Top Management Teams JEL Classi cation: G2 |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://pure.uva.nl/ws/files/808135/80608_324006.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
