Value Creation in Middle‐Market Buyouts: A Transaction‐Level Analysis

Chapman, John L.; Klein, Peter G.; Cumming, Douglas J.

doi:10.1002/9781118267011.ch11

Cited by 6 publications

(3 citation statements)

References 23 publications

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“…Cao (2008) examines LBO premium and shareholder gain worldwide. He confirms the finding of Chapman and Klein (2009) that club deals are much larger than solo deals and suggests that club deals exhibit higher premium than solo deals after controlling for target characteristics such as deal size and risk. 4 He further suggests a winner's curse effect that higher premium leads to poorer operational performance of the LBO targets.…”

Section: Single Private Equity Acquirersupporting

confidence: 84%

“…This implies that buyout specialists in solo deals provide better monitoring. Chapman and Klein (2009) provide evidence that solo deals are smaller in scale than club deals and occur more frequently in slow-growth businesses. In addition, they suggest that in solo deals equity acquired by the PE firm ensures active monitoring and strategic support.…”

Section: Single Private Equity Acquirermentioning

confidence: 97%

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Going private transactions, bondholder returns, and wealth transfer effects

Baran

King

2010

Journal of Banking & Finance

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Section: Single Private Equity Acquirersupporting

confidence: 84%

Section: Single Private Equity Acquirermentioning

confidence: 97%

Going private transactions, bondholder returns, and wealth transfer effects

Baran

King

2010

Journal of Banking & Finance

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“…For this author although it is "quite a common approach" it should only serve as a check and not as the main means of setting a TV. Chapman and Klein (2009) use EBITDA entry and exit multiples as is standard among buyout practitioners.…”

Section: Introductionmentioning

confidence: 99%

Terminal Value in SMEs: Testing the Multiple EV/EBITDA Approach

García

Ribal

2019

Journal of Business Valuation and Economic Loss Analysis

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This study focuses on answering whether EV/EBITDA multiple of public companies in the food industry can be useful to obtain the Terminal Value (TV) in the valuation of unlisted small and medium-sized food companies. A case study into Spanish unlisted agribusinesses is designed for several samples and accounting years from 2010 to 2013. By means of a discounted cash flow (DCF) model combined with bootstrap techniques, the TV/EBITDA empirical distribution of the unlisted multiples is obtained for two different scenarios of free cash flow (FCF) growth, and then compared with the EV/EBITDA of the listed companies in the same industry. The results show that the stock market EV/EBITDA multiple may be used to determine the TV in the valuation process of unlisted small and medium-sized food companies that consistently obtain positive cash flows.

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Private Equity and Asset Characteristics: The Case of Agricultural Production

Mondelli¹,

Klein

2013

Manage Decis Econ

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Unlike most other mature industries, family firms, partnerships, and cooperatives dominate the agricultural production sector, with few corporations and limited access to capital derived from a source other than retained earnings and existing owners. However, the use of external equity capital in agriculture has increased dramatically since 1990. This funding source allows farms to exploit entrepreneurial opportunities not easily financed by debt. Following O. Williamson, we view debt and equity as alternative governance structures and argue that transaction cost economics offers insights on firms' financial structure beyond those provided by agency theory. We relate capital structure to asset specificity, a particularly important attribute in agricultural production. We construct an international dataset of agricultural companies receiving external private equity and show that the attributes of the assets involved in production are important determinants of financial structure. Copyright © 2013 John Wiley & Sons, Ltd.

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Value Creation in Middle‐Market Buyouts: A Transaction‐Level Analysis

Cited by 6 publications

References 23 publications

Going private transactions, bondholder returns, and wealth transfer effects

Going private transactions, bondholder returns, and wealth transfer effects

Terminal Value in SMEs: Testing the Multiple EV/EBITDA Approach

Private Equity and Asset Characteristics: The Case of Agricultural Production

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