Syndication to Overcome Transaction Costs of Cross-Border Investments? Evidence from a Worldwide Private Equity Deals` Dataset

2008 ◽  
Author(s):  
Tereza Tykvova
Keyword(s):  
Transaction Costs ◽  
Private Equity ◽  
Cross Border

scholarly journals Cross-border buyout pricing

2020 ◽  
Author(s):  
Benjamin Hammer ◽  
Nils Janssen ◽  
Bernhard Schwetzler
Keyword(s):  
Transaction Costs ◽  
Firm Size ◽  
Private Equity ◽  
Large Firm ◽  
Accounting Standards ◽  
Information Production ◽  
Organizational Resources ◽  
Cross Border ◽  
Effective Remedy ◽  
Related Transaction

AbstractUsing a dataset of 1149 global private equity transactions, we find that cross-border buyouts are associated with significantly higher valuation multiples than domestic ones. We attribute this finding to informational disadvantages of foreign acquirers. Consistent with this idea, we find that the spread in valuation multiples narrows when the target operates in a country with high accounting standards, when it was publicly listed prior to the buyout, and when information production is facilitated due to large firm size. Further results suggest that local partnering in a syndicate serves as an effective remedy to avoid adverse pricing effects. The spread in valuation multiples is also less pronounced for large buyout funds, presumably because they draw on sufficient organizational resources to cope with cross-border-related transaction costs.

scholarly journals Transnational Corruption and the Globalized Individual

2017 ◽  
Vol 15 (3) ◽  
pp. 732-753 ◽  
Author(s):  
Alexander Cooley ◽  
J. C. Sharman
Keyword(s):  
Real Estate ◽  
Transaction Costs ◽  
Capital Flows ◽  
Oecd Countries ◽  
Citizenship Rights ◽  
Financial Access ◽  
Key Informants ◽  
Cross Border ◽  
Main Components ◽  
The Individual

We present a new, more transnational, networked perspective on corruption. It is premised on the importance of professional intermediaries who constitute networks facilitating cross-border illicit finance, the blurring of legal and illegal capital flows, and the globalization of the individual via multiple claims of residence and citizenship. This perspective contrasts with notions of corruption as epitomized by direct, unmediated transfers between bribe-givers and bribe-takers, disproportionately a problem of the developing world, and as bounded within national units. We argue that the professionals in major financial centers serve to lower the transaction costs of transnational corruption by senior foreign officials. Wealthy, politically powerful individuals on the margins of the law are increasingly globalized as they secure financial access, physical residence, and citizenship rights in major OECD countries. These trends are evidenced by an analysis of the main components of the relevant transnational networks: banks, shell companies, foreign real estate, and investor citizenship programs, based on extensive interviews with key informants across multiple sites.

Cross-Border LBOs, Human Capital, and Proximity: Value Addition through Monitoring in Private Equity Investments

2020 ◽  
pp. 1-41
Author(s):  
Thomas J. Chemmanur ◽  
Tyler J. Hull ◽  
Karthik Krishnan
Keyword(s):  
United States ◽  
Human Capital ◽  
Initial Public Offering ◽  
Private Equity ◽  
The United States ◽  
Efficient Allocation ◽  
Value Addition ◽  
Cross Border ◽  
Target Firms ◽  
Public Offering

We show that cross-border leveraged buyout investments involving U.S. rather than non-U.S. private equity (PE) investors are more likely to have a successful exit (initial public offering or acquisition). Exogenous increases in effective proximity following the signing of “open sky agreements” between the United States and target firms’ home countries increases both the propensity of U.S. PE firms to invest in these firms and the value addition by these investors. We show that such increases in value addition by U.S. PE investors following proximity increases are at least partially due to better monitoring, facilitated by the more efficient allocation of experienced U.S. PE managers to cross-border deals.

Cross-border acquisitions and restructuring: Multinational enterprises and private equity-firms

2017 ◽  
Vol 94 ◽  
pp. 166-184 ◽  
Author(s):  
Selva Bahar Baziki ◽  
Pehr-Johan Norbäck ◽  
Lars Persson ◽  
Joacim Tåg
Keyword(s):  
Multinational Enterprises ◽  
Private Equity ◽  
Cross Border

The Benefit of Cross-Border Investments in the Chinese Emerging Venture Capital and Private Equity Market

Finance ◽  
2021 ◽  
Vol Prépublication (0) ◽  
pp. I-XXXIV
Author(s):  
Fabio Bertoni ◽  
Alexander Peter Groh
Keyword(s):  
Venture Capital ◽  
Private Equity ◽  
Equity Market ◽  
Cross Border

Integrate to Achieve Accelerated Synergy Capture

2020 ◽  
pp. 113-129
Author(s):  
Timothy Galpin
Keyword(s):  
Best Practices ◽  
Private Equity ◽  
Cross Border ◽  
Integration Management ◽  
Post Merger Integration ◽  
Merger Integration

A study of 1,000 corporate and private equity executives found that post-deal integration was the number one factor in realizing deal success. While the term “post-merger integration” (PMI) is commonly used, it is very much a misnomer, as PMI should begin early in the deal process, prior to deal close. This chapter covers three main PMI phases, ten key PMI work streams, agile integration management, and how to accelerate synergy capture during integration. The tools, templates, best practices, potential pitfalls, and a case example of how to conduct effective M&A integration are also addressed, along with the main participants, core activities, buyer’s and seller’s perspectives, and key cross-border considerations.

scholarly journals Cross-border mergers and acquisitions: The role of private equity firms

2017 ◽  
Vol 38 (8) ◽  
pp. 1688-1700 ◽  
Author(s):  
Mark Humphery-Jenner ◽  
Zacharias Sautner ◽  
Jo-Ann Suchard
Keyword(s):  
Mergers And Acquisitions ◽  
Private Equity ◽  
Cross Border
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