Value Creation in Private Equity Portfolio Companies: An Empirical Analysis of the Austrian PE/VC Market

Johannes Asel

Publikation: AbschlussarbeitDiplomarbeit


With regards to the ongoing controversial discussions about the effect of private equity (PE) and venture capital (VC) investments, the aim of this thesis is to provide the reader with a holistic understanding of the value generation process in PE and VC transactions, notably the value creation within PE/VC target companies. Hence, this thesis firstly con-structs an appropriate terminology framework and provides a review of studies on value generation by PE and VC investors. Secondly, the methods used by PE and VC investors to create shareholder value within their portfolio compa-nies are presented and discussed. This thesis also contains the results of 15 qualitative interviews with Austrian PE and VC managers. The key observations are: (1) Operational Engineering will become more important for Austrian PE and VC Investors in the future as increasing prices for targets are expected; (2) Sales and distribution is a key value driver for Austrian PE and VC investors to enhance financial performance of target companies; (3) Working capital manage-ment and overhead cost reductions are important value drivers for Austrian VC/PE Investors to improve the profitability of their portfolio companies; (4) The choice of the exit alternative has little influence on the use of value drivers.
OriginalspracheDeutsch (Österreich)
Gradverleihende Hochschule
  • Wirtschaftsuniversität Wien
PublikationsstatusVeröffentlicht - 2008