ExitStrategiesofBuyoutInvestment-Anempiricalanalysis-Dr.DanielSchmidt-2007教程.pdf

Research Authors : Dr. Daniel Schmidt February 2007, 25 Sascha Steffen www.cepres.de Franziska Szabó Exit Strategies of Buyout Investment – An Empirical Analysis Abstract This study focuses on buyout exits in Europe and the United States. We analyze the three main exit routes, initial public offerings (IPOs), sales and write-offs, using a unique data set including 672 MBO and LBO investments for the time period from 1990 through 2005. We examine the strategies behind and determinants influencing the choice of an exit vehicle by employing a multinomial logit model. The results show strong support for a signaling effect: Private equity investors write off investments that turn out to be non-performing soon, showing their ability to filter out bad investments quickly. We further find evidence that exits of buyout investments tend to be driven by market sentiment, especially with regard to IPO issues. However, we could not find significant evidence that market characteristics influence the occurrence of buyout-backed IPOs. We further analyze the impact of the internal rate of return (IRR) on the chosen exit route using a multivariate regression model. We f