TY - JOUR T1 - Corporate Raiders at the Gates of Germany? <em>Value Drivers in Buyout Transactions</em> JF - The Journal of Private Equity SP - 28 LP - 45 DO - 10.3905/jpe.2017.20.2.028 VL - 20 IS - 2 AU - Fabian Söffge AU - Reiner Braun Y1 - 2017/02/28 UR - https://pm-research.com/content/20/2/28.abstract N2 - In this article, the German-speaking countries in Europe (DACH) are treated as a distinct economic region. We analyze a proprietary sample of deal level data for 123 leveraged buyout transactions in the DACH countries between 1995 and 2010. By distinguishing between financial and operational value drivers through unlevering the overall times money multiple, we find that two-thirds of generated value stems from EBITDA growth, excess cash generation, and multiple expansion, while one-third of value generated stems from leverage. Buyouts are found to yield abnormal returns compared with public benchmarks. The overall average (median) operational alpha is 11.6ppts (5.7ppts) in our sample. Buyouts before the global financial crisis in 2008 show better performance, while post-crisis exits have a significantly higher operational alpha.TOPICS: Private equity, developed, statistical methods, performance measurement ER -