Performance indicators of management buyouts using the analytic hierarchy process method

Petra Grah (Author), Vesna Čančer (Author), Borut Bratina (Author)

Abstract

Background and Purpose: In Slovenia, few management buyout (MBO) studies have been carried out. The focus was mostly on the motives for acquisition of companies and the success rate of the acquisitions. This paper aims to analyse the indicators which suggest an impending bankruptcy or financial restructuring of companies and explore how these indicators are different for successful and unsuccessful MBOs. Methodology: In the survey, we included 23 selected MBOs in Slovenia between 2005 and 2008, using the following financial and non-financial indicators: profitability, performance, solvency and liquidity, using the analytic hierarchy process method. The key aim of the survey was to use financial and non-financial indicators to study if target companies where bankruptcy or financial restructuring has not yet been initiated prevalently have higher aggregate values compared to those in which bankruptcy or financial restructuring procedures have already begun. Thus, we used the selected indicators to demonstrate one of the possible methods to predict the success of a particular MBO. Results: We found that in most examples of unsuccessful MBOs, target companies have poorer results in terms of performance, solvency and liquidity, when compared to successful MBOs. Based on the selected areas, we divided the results into four quarters. We found that most target companies where MBOs had been unsuccessful are ranked in a lower quarter than most of the target companies where the MBOs had been successful. Conclusion: The papers main contribution is the finding that the selected financial and non-financial indicators differ in cases of successful and unsuccessful MBOs. This knowledge helps us to find ways of avoiding these situations in the future.

Keywords

management buy-outs;management;bankruptcy models;financial and non-financial indicators;the analytic hierarchy process;

Data

Language:	English
Year of publishing:	2018
Typology:	1.01 - Original Scientific Article
Organization:	UM EPF - Faculty of Economics and Business
UDC:	005.9
COBISS:	13077532
ISSN:	1318-5454
Parent publication:	Organizacija
Views:	927
Downloads:	272
Average score:	0 (0 votes)
Metadata:

Other data

Secondary language:	Slovenian
Secondary title:	Kazalniki uspešnosti managerskih prevzemov z uporabo metode analitičnega hierarhičnega procesa
Secondary abstract:	Ozadje in namen:. Na področju managerskih prevzemov (MBO) je bilo v Sloveniji opravljenih malo raziskav. Raziskave so se osredotočale predvsem na motive prevzemov družb ter stopnjo uspešnosti prevzemov. Namen prispevka je analizirati indikatorje, ki napovedujejo stečaj ali finančno prestrukturiranje družb, ter preveriti, kako se le-ti razlikujejo pri uspešnih in neuspešnih družbah. Metodologija: V raziskavo smo vključili 23 MBO v Sloveniji v obdobju od 2005 do 2008, uporabili pa smo sledeče finančne in nefinančne indikatorje: dobičkonosnosti, poslovanja, plačilne sposobnosti in likvidnosti, pri čemer smo uporabili metodo analitičnega hierarhičnega procesa. Glavni cilj raziskave je s pomočjo izbranih finančnih in nefinančnih indikatorjev raziskati, ali imajo ciljne družbe, kjer se stečaj ali finančno prestrukturirane nista pričela, v večini primerov višje agregirane vrednosti, kot tiste, nad katerimi se je pričel stečaj ali finančno prestrukturiranje. Tako smo s pomočjo izbranih indikatorjev prikazali enega izmed možnih načinov, kako ugotoviti, da bo posamezen MBO uspešen oz. neuspešen. Rezultati: Ugotovili smo, da se slabši rezultati večinoma pojavljajo pri ciljnih družbah na področjih dobičkonosnosti, poslovanja, plačilne sposobnosti in likvidnosti, kadar gre za neuspešne MBO, kakor pa v primerih uspešnih MBO. Nadalje smo glede na izbrane indikatorje rezultate razdelili v štiri kvartale. Ugotovili smo, da je večina ciljnih družb, kjer so bili MBO neuspešni, uvrščena v slabši kvartal od večine ciljnih družb, kjer so bili MBO uspešni. Zaključek: Glavni prispevek je v ugotovitvi, da se izbrani finančni in nefinančni kazalniki razlikujejo, kadar gre za uspešne in neuspešne MBO. To znanje bo pripomoglo k preprečevanju podobnih dogodkov v prihodnosti.
Secondary keywords:	prevzemi;prevzemi podjetij;kazalniki;uspešnost;analize;
URN:	URN:SI:UM:
Type (COBISS):	Scientific work
Pages:	str. 169-184
Volume:	ǂVol. ǂ51
Issue:	ǂno. ǂ3
Chronology:	Aug. 2018
DOI:	10.2478/orga-2018-0014
ID:	10977091