PRINT THIS PAGE The impact and perception of buy-outs in Europe20/09/2006. Source: London Business School. Loic Le Foll 
The private equity industry, which has been growing rapidly in Europe, has recently had to face increasing public awareness and criticism, says Loic Le Foll Focusing on the buy-out industry in Europe, this paper aims to analyse the factors that can contribute to a poor perception of buy-outs as well as the potential consequences if nothing is done. The private equity industry, which has been growing rapidly in Europe, has recently had to face increasing public awareness and criticism.
However, private equity firms and their management strategies have become a debated and heated topic, after Franz Münterfering, chairman of the German Social Democratic Party (SPD), had criticised “international capital” and compared private equity firms to “locusts that fall upon companies, stripping them bare before moving on”.
This comment, and many others often made in the press, are discrediting the private equity sector and contribute to doubts being raised about the impact of buyouts on the economy and on society. Most private equity firms were surprised by the violence of these attacks and concerned about the consequences this could have on the industry.
Focusing on the buyout industry in Europe, this paper aims to analyse the factors that can contribute to a poor perception of buyouts as well as the potential consequences if nothing is done. Furthermore, it gives recommendations and draws conclusions that might help to improve the image of the industry.
Click here to view full document (pdf 144KB) You need Adobe Acrobat to read this document. If you do not have it, you can download it free from www.adobe.com/products/acrobat/readstep.html
Loic Le Foll wrote this paper under the supervision of the London Business School.
|
