Wilson, N orcid.org/0000-0001-5250-9894, Uddin, M orcid.org/0000-0003-1035-0365 and Wright, M (2022) Exporting by Private Equity-Backed Portfolio Companies. British Journal of Management, 33 (1). pp. 266-285. ISSN 1045-3172
Abstract
Private equity (PE) funds typically invest in and acquire established companies (via buyout mechanisms) and implement value creation strategies that realize efficiency improvements and exploit entrepreneurial growth opportunities. This paper explores the relationships between PE backing of bought-out companies and their post-acquisition strategy to stimulate sales growth through exporting. Importantly, we explore the routes through which PE funds, as ‘active investors’, affect the acquired companies’ ability to enter and expand export markets. First, through providing access to financial resources, increasing capital and operational expenditure, to boost both efficiency and improve managerial processes; and second, by bringing expertise and relational capital via managerial change and board representation to their acquisitions. Using a panel dataset covering the period 1998–2013, involving 2.6 million company-level observations of which around 10% are actively engaged in exporting, we find that PE-backed firms are more likely to engage in exporting (export propensity) and be internationalized post-buyout than a control sample and that the effect is larger than for listed companies. Moreover, in relation to export performance we find a positive export performance differential (export intensity) for PE-backed buyouts.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | This is the peer reviewed version of the following article: Wilson, N., Uddin, M. & Wright, M., 2021. Exporting by Private Equity‐Backed Portfolio Companies. British Journal of Management, 33(1), pp.266–285, which has been published in final form at http://dx.doi.org/10.1111/1467-8551.12566.. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited. |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 02 Nov 2021 12:23 |
Last Modified: | 23 Nov 2023 01:13 |
Status: | Published |
Publisher: | Wiley |
Identification Number: | 10.1111/1467-8551.12566 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:179658 |