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Value Creation in Private Equity Transactions: Actions for Multiple Expansion

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dc.contributor.advisorMarc Goergen
dc.contributor.authorSkora, Konstantin Maximilian
dc.contributor.rorhttps://ror.org/02jjdwm75
dc.date.accessioned2025-09-01T10:22:38Z
dc.date.available2025-09-01T10:22:38Z
dc.date.issued2025
dc.description.abstractThis study examines private equity TRANSACTIONS. Specifically, it focuses on the strategies, measures, policies, and initiatives (ACTIONS) initiated by private equity fund managers (GPs) to achieve MULTIPLE EXPANSION, or the sale of a PORTFOLIO COMPANY at a higher EBITDA MULTIPLE than that at which it was purchased. MULTIPLE EXPANSION is one of the three components of VALUE CREATION, defined as the difference in EQUITY VALUE between the ENTRY and EXIT of a PORTFOLIO COMPANY. The study situates this concept within the broader context of MULTIPLE-BASED VALUATION, the predominant valuation method used in the private equity industry. Changes in EQUITY VALUE between ENTRY and EXIT can be mathematically attributed to three sources: changes in EBITDA (EBITDA GROWTH), changes in the EBITDA MULTIPLE (MULTIPLE EXPANSION), and changes in NET DEBT (DELEVERAGE). While the academic literature has extensively explored EBITDA GROWTH and DELEVERAGE as outcomes of ACTIONS initiated by GPs, little is known about deliberate ACTIONS aimed at securing MULTIPLE EXPANSION. This study aims to fill this gap by demonstrating the relevance of MULTIPLE EXPANSION as a significant aspect and inherent value-altering factor of VALUE CREATION actively targeted by GPs. Using a proprietary deal-level dataset, several statistical tests and regression analyses are conducted to find evidence to support the hypotheses that each of LATE-STAGE EXPANSION CAPEX, LATE-STAGE R&D, STRATEGIC REFOCUS, and ADD-ON acquisitions have a significant positive effect on MULTIPLE EXPANSION. The evidence supports both LATE-STAGE EXPANSION CAPEX and ADD-ON acquisitions. For LATE-STAGE R&D and STRATEGIC REFOCUS, the study finds a significant positive effect on MULTIPLE EXPANSION, if the interaction term of both variables is examined.
dc.description.peerreviewedyes
dc.description.statusPublished
dc.formatapplication/pdf
dc.identifier.citationSkora, K. M. (2025) Value Creation in Private Equity Transactions: Actions for Multiple Expansion. (Tesis doctoral).
dc.identifier.urihttps://hdl.handle.net/20.500.14417/3842
dc.language.isoen
dc.page.total139
dc.publication.placeSegovia
dc.publisherIE University
dc.relation.entityIE University
dc.relation.phdPhD program
dc.relation.schoolIE Business School
dc.rightsAttribution-NonCommercial 4.0 International
dc.rights.accessRightsinfo:eu-repo/semantics/openAccess
dc.rights.urihttps://creativecommons.org/licenses/by-nc/4.0/deed
dc.subject.keywordValue creation
dc.subject.keywordMultiple expansion
dc.subject.keywordPrivate equity
dc.subject.keywordLate-stage expansion CapEx,
dc.subject.keywordLate-stage R&D
dc.subject.keywordStrategic refocus
dc.subject.keywordAdd-ons
dc.titleValue Creation in Private Equity Transactions: Actions for Multiple Expansion
dc.title.alternativeCreación de valor en transacciones de Private Equity: Acciones para la expansión de múltiplos
dc.typeinfo:eu-repo/semantics/doctoralThesis
dc.version.typeinfo:eu-repo/semantics/publishedVersion
dspace.entity.typePublication
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