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.
|Publikationsstatus||Veröffentlicht - 2008|