Performance of Swedish Firms after Acquisitions
(2025) NEKH02 20251Department of Economics
- Abstract (Swedish)
- This study examines the value creation in private equity through looking at the changes of a few chosen metrics, comparing the years before and after acquisitions. Building on previous research into the operational impact of leveraged buyouts in Sweden (Bergström, Grubb & Jonsson), 2009; Nordström 2015) this thesis examines the long-run performance of firms targeted by private equity (PE). Focusing on Swedish companies that received PE investment in 2013, the study covers the period from 2013-2022 and adopts a long-term, data driven approach.
The primary research question is: How does private equity ownership affect the performance of Swedish firms post-acquisition? Then sub questions explore how the two groups differ across four... (More) - This study examines the value creation in private equity through looking at the changes of a few chosen metrics, comparing the years before and after acquisitions. Building on previous research into the operational impact of leveraged buyouts in Sweden (Bergström, Grubb & Jonsson), 2009; Nordström 2015) this thesis examines the long-run performance of firms targeted by private equity (PE). Focusing on Swedish companies that received PE investment in 2013, the study covers the period from 2013-2022 and adopts a long-term, data driven approach.
The primary research question is: How does private equity ownership affect the performance of Swedish firms post-acquisition? Then sub questions explore how the two groups differ across four accounting based metrics: EBITDA, RoC, Debt ratio, Revenue Growth. These measures reflect profitability, capital efficiency, financial risk and growth, dimensions frequently highlighted in the private equity literature, though not previously studied in this particular context.
The analysis utilizes financial accounting data from the Capital IQ database. To mitigate selection bias, propensity score matching was used to construct a matched sample of non-PE backed firms. The study is grounded in four dominant theoretical perspectives in private equity: profitability, capital efficiency, leverage and growth.
Among the four metrics analyzed, none of the metrics showed a statistically significant difference for PE-backed firms compared to the control group. The findings suggest that private equity investment in 2018 had limited impact on traditional financial indicators. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9210627
- author
- Brunér, Jonas LU
- supervisor
- organization
- course
- NEKH02 20251
- year
- 2025
- type
- M2 - Bachelor Degree
- subject
- keywords
- Ownership, Leverage, Profitability, Growth
- language
- English
- id
- 9210627
- date added to LUP
- 2025-09-12 09:15:21
- date last changed
- 2025-09-12 09:15:21
@misc{9210627,
abstract = {{This study examines the value creation in private equity through looking at the changes of a few chosen metrics, comparing the years before and after acquisitions. Building on previous research into the operational impact of leveraged buyouts in Sweden (Bergström, Grubb & Jonsson), 2009; Nordström 2015) this thesis examines the long-run performance of firms targeted by private equity (PE). Focusing on Swedish companies that received PE investment in 2013, the study covers the period from 2013-2022 and adopts a long-term, data driven approach.
The primary research question is: How does private equity ownership affect the performance of Swedish firms post-acquisition? Then sub questions explore how the two groups differ across four accounting based metrics: EBITDA, RoC, Debt ratio, Revenue Growth. These measures reflect profitability, capital efficiency, financial risk and growth, dimensions frequently highlighted in the private equity literature, though not previously studied in this particular context.
The analysis utilizes financial accounting data from the Capital IQ database. To mitigate selection bias, propensity score matching was used to construct a matched sample of non-PE backed firms. The study is grounded in four dominant theoretical perspectives in private equity: profitability, capital efficiency, leverage and growth.
Among the four metrics analyzed, none of the metrics showed a statistically significant difference for PE-backed firms compared to the control group. The findings suggest that private equity investment in 2018 had limited impact on traditional financial indicators.}},
author = {{Brunér, Jonas}},
language = {{eng}},
note = {{Student Paper}},
title = {{Performance of Swedish Firms after Acquisitions}},
year = {{2025}},
}