Search results for "Private equity firm"
showing 5 items of 5 documents
Equity-worthiness and equity-willingness: key factors in private equity deals
2014
While access to private equity funds (PEFs) provides a unique opportunity for firms to set up sturdy growth paths, how PEFs select companies is an unknown process to entrepreneurs and business owners. This study aims to offer insights regarding the private equity market to entrepreneurs searching for external capital. We analyzed a novel dataset of 240 pre-deal negotiations between small- and medium-sized Italian companies and a closed-end fund. Results indicate that the successful closing of a deal depends on more than just the target firm's equity-worthiness (i.e., the company's ability to meet the expectations of a private equity investor). In fact, there is another dimension: the target…
Private Equity Firms : Their Rôle in the Formation of Strategic Alliances
2018
International audience; This work analyzes the role of private equity firms (SCIs) in forming strategic alliances in the French private equity market. The subject is important because the formation of alliances and, more generally, the networking of SMEs, could be an alternative to the lack of medium-sized companies in France. For French SCIs, which are increasingly in a competitive situation, assistance in forming alliances for their holdings may represent a new activity and be a source of competitive advantage. The work is positioned transversally, touching the areas of corporate governance, entrepreneurial finance and strategy.
The Institutional Determinants of Private Equity Involvement in Business Groups The Case of Africa
2015
This study examines the governance attributes of post-IPO (initial public offering) retained ownership of private equity in business group constituent firms in contrast to their unaffiliated counterparts, in 202 newly listed firms in 22 emerging African economies. We adopt an actor centered institutional-theoretic perspective in rationalizing institutional voids and the advantages of maintained governance by both business angels (BA) and venture capital (VC) private equity. Our findings reveal private equity retain higher post-IPO ownership in business group constituents compared to unaffiliated firms and that this is inversely moderated in the context of improving institutional quality. Ou…
Alliance formation as growth opportunity for non-publicly traded companies: a value-added service provided by private equity investors
2016
We analyze the role of Private Equity firms (PE-Firms) as a governance mechanism, focusing on their role as social intermediaries, helping their portfolio companies to form alliances and thereby spurring entrepreneurial growth. Alliances as long term inter-firm cooperations are considered to be a main source of firm-innovation. External growth via alliances is especially important for small to medium sized companies (SME) – largely dominant in Europe (up to 99%)–, because their internal resources are limited. Since a few years, these facts lead governments to undertake actions aimed to create environments that boost inter-firm linkages and entrepreneurial clusters. In European countries, su…
Venture capitalists' decision-making in small equity markets: a case study using participant observation
2004
Despite significant academic research undertaken in the field of venture capital decision-making process, the dimension and maturity of equity market has not yet been considered as an important contextual factor. Aiming at developing an understanding on how venture capitalists (VCs) select early-stage projects in small equity markets, a pilot study using participant observation technique has been conducted in a Portuguese venture capital firm. The findings indicate that the decision-making process and the criteria used by VCs in this market context differ significantly from those used in the developed equity markets. Regarding the decision-making process as a whole, it appears to be more in…