Title: Value Creation in Buyouts: Value-enhancement practices of private equity firms with a hands-on approach Private equity emerges as an alternative financing source to bank loans and other types of financial instruments, such as stock and bond issuance. The fundamental operation of
The understanding of value is often described in terms of an industrial view in which value creation is linear, additive process. The emerging view takes a different approach to value creation: it’s interactive, relationships-based and synchronic. But either of these views capture
Private equity firms have demonstrated a historical success in the buyout industry. However, current trends in the industry such as institutional changes, phenomenon of capital overhang and an influx of new entrants have intensified competition among buyout firms. To maintain the expected