Agency, strategic entrepreneurship and the performance of private equity backed buyouts
Meuleman, Miguel Amess, K. Wright, Mike Scholes, L.
Meuleman, Miguel
Amess, K.
Wright, Mike
Scholes, L.
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Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2009
Journal
Entrepreneurship: Theory and Practice
Book
Publication Volume
33
Publication Issue
1
Publication Begin page
213
Publication End page
239
Publication NUmber of pages
27
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Abstract
Agency theory has focused on buyouts as a governance and control device to increase profitability, organizational efficiency, and limited attention to growth. A strategic entrepreneurship view of buyouts incorporates upside incentives for value creation associated with growth as well as efficiency gains. In this paper, we develop the complementarity between agency theory and strategic entrepreneurship perspectives to examine the performance implications for different types of buyouts. Further, we study how the involvement of private equity (PE) firms is related to the performance of the post‐buyout firm. These issues are examined for a sample of 238 PE‐backed buyouts in the UK between 1993 and 2003. Implications for theory and practice are suggested.
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Keywords
Strategic Entrepreneurship