Private Equity 4.0. at Work: Operating and Strategic Value Creation Improvements in Contemporary Private Equity Buyouts - the Case Study of Nets A/S

Dominik Edward Keil

Student thesis: Master thesis

Abstract

The purpose of the thesis is to fill the gap between the theoretical frameworks based on findings from quantitative studies on value creation in Private Equity investments and practical knowledge of actions actually taken by PE sponsors in pursuing value creation in their portfolio companies. The thesis focuses on operating and strategic value creation measures, which are claimed to be the most important contributors in value enhancement in contemporary Private Equity buyouts. In order to provide a deep insight into particular actions taken by such investors, a single case study approach is used in analysing the acquisition of Nets A/S by the consortium of leading, global Private Equity funds Advent International and Bain Capital. The analysed performance of Nets is further benchmarked to a group of its close industry peers. The conducted analysis allowed the author to identify the value generation principle employed in this particular transaction, which was based on implementing a broad transformation programme aimed at revamping the company’s growth potential, as well as sustainably improving the business’s underlying profitability. Apart from providing insight into value creation actions in this particular transaction, which largely confirmed findings from recent studies on value creation in Private Equity portfolio companies, several areas for potential further research were identified.

EducationsMSc in Finance and Investments, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2017
Number of pages75
SupervisorsMorten Holm