ValueCreationinPrivateEquity-Novemeber2009教程.pdf

and «Your bridge to the world of private equity.» Value Creation in Private Equity Prof. Dr. Dr. Ann-Kristin Achleitner (CEFS) Dr. Katharina Lichtner (Capital Dynamics) Dr. Christian Diller (Capital Dynamics) In cooperation with: Dr. Reiner Braun, Nico Engel, Christian Figge, Florian Tappeiner (all CEFS) November 2009 Confidential Private equity: operational improvements – not only financial engineering  Two thirds of value creation is driven by (i) operational improvement in the portfolio companies and (ii) valuation multiple arbitrage  The operational performance of private equity backed companies is superior to that of publicly traded peers  Only one third of value creation is driven by leverage, i.e. increasing the return on equity by taking on more debt  The detailed analysis of value drivers in private equity is based on value creation and cash flow data from 241 private equity transactions. This makes it one of the most comprehensive studies of value creation in private equity from the perspective of the general partner (GP). Nevertheless, the results are not directly applicable to the entire private equity universe This value creation study will be continuously updated and extended. This will also allow an improved assessment of GP performance and can serve as a benchmark. Value Creation in Private Equity | Overall summary | November 2009 Confidential 2 Content Introduction Sample Value creation in private equity transactions Benchmarking private equity Summary and outlook Appendix Value Creation in Private Equity | Introduction | November 2009 Confidential 3 Objective: a detailed analysis of value drivers in private equity transactions  The purp