ASSESSMENT OF THE INVESTMENT PROJECT EFFECTIVENESS FOR THE ACQUISITION OF COMPANIES BY THE DIRECT INVESTMENT FUND
The performance of investment projects in acquisitions of companies by private equity funds has been explored by assessing the financial and valuation results of such transactions in two directions: change in the valuation multiple of an acquired company over the period of the investment project and...
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| Format: | Article |
| Language: | English |
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Publishing House of the State University of Management
2020-04-01
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| Series: | Вестник университета |
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| Online Access: | https://vestnik.guu.ru/jour/article/view/2090 |
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| author | G. G. Utenov |
| author_facet | G. G. Utenov |
| author_sort | G. G. Utenov |
| collection | DOAJ |
| description | The performance of investment projects in acquisitions of companies by private equity funds has been explored by assessing the financial and valuation results of such transactions in two directions: change in the valuation multiple of an acquired company over the period of the investment project and the impact of a fund on a company’s operational efficiency. As a result of the analysis, the hypothesis of the higher EV/EBITDA exit multiple of the private equity fund compared to the same entry multiple was not confirmed. However, the hypothesis that private equity funds are able to increase the operational efficiency of portfolio companies on average better than other types of investors, confirms the effectiveness of private equity funds and high performance of such investment projects. |
| format | Article |
| id | doaj-art-0504df3ff0ab4818975c4547b99bd02c |
| institution | Kabale University |
| issn | 1816-4277 2686-8415 |
| language | English |
| publishDate | 2020-04-01 |
| publisher | Publishing House of the State University of Management |
| record_format | Article |
| series | Вестник университета |
| spelling | doaj-art-0504df3ff0ab4818975c4547b99bd02c2025-02-04T08:28:03ZengPublishing House of the State University of ManagementВестник университета1816-42772686-84152020-04-010216417110.26425/1816-4277-2020-2-164-1711645ASSESSMENT OF THE INVESTMENT PROJECT EFFECTIVENESS FOR THE ACQUISITION OF COMPANIES BY THE DIRECT INVESTMENT FUNDG. G. Utenov0Financial University under the Government of the Russian FederationThe performance of investment projects in acquisitions of companies by private equity funds has been explored by assessing the financial and valuation results of such transactions in two directions: change in the valuation multiple of an acquired company over the period of the investment project and the impact of a fund on a company’s operational efficiency. As a result of the analysis, the hypothesis of the higher EV/EBITDA exit multiple of the private equity fund compared to the same entry multiple was not confirmed. However, the hypothesis that private equity funds are able to increase the operational efficiency of portfolio companies on average better than other types of investors, confirms the effectiveness of private equity funds and high performance of such investment projects.https://vestnik.guu.ru/jour/article/view/2090investmentsinvestment projectvalue of businessprivate equity fundsoperational efficiencyregression analysismerger transactionacquisition transactionvaluation multiple |
| spellingShingle | G. G. Utenov ASSESSMENT OF THE INVESTMENT PROJECT EFFECTIVENESS FOR THE ACQUISITION OF COMPANIES BY THE DIRECT INVESTMENT FUND Вестник университета investments investment project value of business private equity funds operational efficiency regression analysis merger transaction acquisition transaction valuation multiple |
| title | ASSESSMENT OF THE INVESTMENT PROJECT EFFECTIVENESS FOR THE ACQUISITION OF COMPANIES BY THE DIRECT INVESTMENT FUND |
| title_full | ASSESSMENT OF THE INVESTMENT PROJECT EFFECTIVENESS FOR THE ACQUISITION OF COMPANIES BY THE DIRECT INVESTMENT FUND |
| title_fullStr | ASSESSMENT OF THE INVESTMENT PROJECT EFFECTIVENESS FOR THE ACQUISITION OF COMPANIES BY THE DIRECT INVESTMENT FUND |
| title_full_unstemmed | ASSESSMENT OF THE INVESTMENT PROJECT EFFECTIVENESS FOR THE ACQUISITION OF COMPANIES BY THE DIRECT INVESTMENT FUND |
| title_short | ASSESSMENT OF THE INVESTMENT PROJECT EFFECTIVENESS FOR THE ACQUISITION OF COMPANIES BY THE DIRECT INVESTMENT FUND |
| title_sort | assessment of the investment project effectiveness for the acquisition of companies by the direct investment fund |
| topic | investments investment project value of business private equity funds operational efficiency regression analysis merger transaction acquisition transaction valuation multiple |
| url | https://vestnik.guu.ru/jour/article/view/2090 |
| work_keys_str_mv | AT ggutenov assessmentoftheinvestmentprojecteffectivenessfortheacquisitionofcompaniesbythedirectinvestmentfund |