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Title
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Performance consequences for Belgian buyout-backed target companies
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Author
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Abstract
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| In this article, we empirically examine the performance consequences for 109 Belgian buyout-backed target companies over the period 2012–2019. We investigate whether buyout financiers succeed to increase target fi rms’ industry-adjusted EBITDA margin and sales growth in the years following the buyout. Furthermore, we analyze whether large investors are better capable to improve target performance compared to their smaller peers. We show that the average industry-adjusted EBITDA margin declines by almost two percent by the second year following the buyout. The industry-adjusted sales growth rate even decreases by almost 14%. Hence, we fi nd evidence that Belgian target companies, on average, suffer from performance deteriorations after being funded by buyout financiers. We find no signifi cant evidence that larger investors succeed at realizing performance improvements at the level of the target company. |
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Language
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English
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Source (journal)
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Bank- en financiewezen. - Bruxelles, 2003, currens
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Publication
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Bruxelles
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2021
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ISSN
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2033-7825
[print]
2566-154X
[online]
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Volume/pages
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2
(2021)
, p. 59-66
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