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  • April 2006 (Revised April 2012)
  • Background Note
  • HBS Case Collection

The Role of Private Equity Firms in Merger and Acquisition Transactions

By: William E. Fruhan Jr.
  • Format:Print
  • | Pages:15
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Abstract

Explores the importance of private equity firms in merger and acquisitions activity around the globe. In many countries, these firms now account for one quarter of the total merger and acquisition activity of all firms. The larger private equity firms generate fees for investment banking firms that exceed $350 million per year. Shows how the general partners of the fund financing the acquisition; the limited partners of the fund financing the acquisition; and the management team running the acquired firm for the private equity sponsor share the shareholder value creation in a successful leveraged buyout sponsored by a private equity firm.

Keywords

Leveraged Buyouts; Mergers and Acquisitions; Private Equity; Investment Funds; Value Creation

Citation

Fruhan, William E., Jr. "The Role of Private Equity Firms in Merger and Acquisition Transactions." Harvard Business School Background Note 206-101, April 2006. (Revised April 2012.)
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About The Author

William E. Fruhan

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More from the Author

    • December 2018
    • Faculty Research

    The Case of the Unidentified Industries—2018

    By: Mihir A. Desai, William E. Fruhan, Jr., Leanne Fan and Adil Bhatia
    • December 2018
    • Faculty Research

    The Case of the Unidentified Industries—2018

    By: Mihir A. Desai, William E. Fruhan and Leanne Fan
    • June 2018
    • Faculty Research

    Burton Sensors, Inc., Spreadsheet for Instructors (Brief Case)

    By: William E. Fruhan and Wei Wang
More from the Author
  • The Case of the Unidentified Industries—2018 By: Mihir A. Desai, William E. Fruhan, Jr., Leanne Fan and Adil Bhatia
  • The Case of the Unidentified Industries—2018 By: Mihir A. Desai, William E. Fruhan and Leanne Fan
  • Burton Sensors, Inc., Spreadsheet for Instructors (Brief Case) By: William E. Fruhan and Wei Wang
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