Managing and developing an investment in PE is quite complex, as there is no other alternative asset class where the performance gap between top- and bottom-quartile PE funds is wider than the PE asset class. In addition to examining the actions undertaken by PE companies during the investment period, the right target has to be selected. To date the academic literature regarding the selection of a promising target company on an empirical basis is scarce. In particular it is not clear how PE companies selection criteria differentiate in a country comparison.
The present empirical analysis therefore provides an empirical approach to contribute to the research field of PE target selection with a country comparison by identifying PE target characteristics for Germany and Great Britain.
Inhaltsverzeichnis (Table of Contents)
- Private Equity and the German British Comparison
- Introduction of Private Equity
- Macro-Level Determinants
- Micro-Level Determinants
- Identification of Company-Specific Determinants from Value Creation Drivers
- Literature regarding Company-Level Determinants of Target Selection
- Development of Hypotheses
- Methodology
- Data
- Restrictions on the Dataset
- Variable Selection and Creation
- Research Design
- Subsampling of the Dataset
- Statistical Inference Model
- Application of different Sets of Explanatory Variables
- Empirical Results
- Descriptive Statistics
- Regression Estimation Results
- Discussion
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This master thesis analyzes the company-specific characteristics of private equity targets in Germany and Great Britain, comparing the two countries and exploring size-based subsamples. The study aims to identify key determinants that influence private equity investment decisions and assess whether these factors vary across different company sizes in both countries.
- Comparison of private equity investment patterns in Germany and Great Britain
- Identification of company-specific characteristics that influence private equity target selection
- Analysis of the impact of company size on private equity investment decisions
- Exploration of potential differences in investment criteria across countries and company sizes
- Contribution to the understanding of private equity investment behavior in the context of the German and British markets
Zusammenfassung der Kapitel (Chapter Summaries)
- Chapter 1: This chapter provides an introduction to private equity, focusing on its role in the German and British markets. It reviews relevant literature and establishes a theoretical framework for analyzing company-specific characteristics that influence private equity target selection.
- Chapter 2: This chapter delves into the methodology employed in the study, outlining the data sources, data preparation techniques, and research design. It elaborates on the subsampling approach used to explore company size differences and describes the statistical model applied for analyzing the data.
- Chapter 3: This chapter presents the empirical results of the study, focusing on descriptive statistics and regression analysis outcomes. It analyzes the key company-specific characteristics and assesses their impact on private equity investment decisions across different company sizes in Germany and Great Britain.
- Chapter 4: This chapter discusses the implications of the empirical findings, highlighting key insights into the differences in private equity investment patterns between Germany and Great Britain, as well as across different company sizes.
Schlüsselwörter (Keywords)
This master thesis focuses on private equity investment, company-specific characteristics, target selection, Germany, Great Britain, size-based subsamples, regression analysis, investment patterns, value creation, macro-level determinants, micro-level determinants, and company size effects.
- Quote paper
- Maximilian Michl (Author), 2023, Company-Specific Characteristics of Private Equity Targets. A Comparison between Germany and Great Britain, Munich, GRIN Verlag, https://www.grin.com/document/1398116
