The initial sample consisted of all LBOs in Germany where buyout investors had exited as (dominant) owner before 2004. This ensured a post-exit investigation period of at least three complete fiscal years in respect to the data consolidation at the end of 2007. Since the LBO governance structure is required to be decisive on management’s objectives and corporate policy-making, a minimum holding period of three years by the buyout investors was demanded. Hence, the companies at the earliest entered into the buyout in 2001. As a precautionary measure, the author also cuts the sample to an earliest exit in 1999, since one would expect that the quality and consistency of data, in particular the self-assessment by management, deteriorates with increasing time. In the next step, the sample was adjusted to those buyouts that exited either through a trade sale or through a going-public. Finally, those cases where the buyout investors continued to hold a significant share of equity were deleted.
KeywordsCash Flow Institutional Investor Supervisory Board Free Cash Flow Ownership Concentration
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