The Routledge Companion to Management Buyouts

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RESOURCE ORCHESTRATION POST-MANAGEMENT BUYOUT

Hans Bruining

Introduction

Financial expertise, negotiation skills, insights into debt markets, and experience in optimizing capital structure are all important drivers of value creation for private equity (PE) investors. However, for the purpose of value generation in buyouts, PE investors cannot do without capable management who take actions to restructure, revitalize, and grow the business. In fact, managerial knowledge of operational and industry requirements is crucial to buyout success. In this chapter we show how buyouts of mature firms are managed to create value drawing on the concept of resource orchestration (Sirmon et al., 2011). More specifically, we look at the actions taken by ...