Restructuring and Failure in Buy-outs and Buy-ins

Authors

  • Mike Wright,

    1. Mike Wright is Professor of Financial Studies and Director of the Centre for Management Buy-out Research (CMBOR) at the University of Nottingham. Nick Wilson is ICM Professor of Credit Management at the University of Bradford. Ken Robbie is Research Fellow at the CMBOR, and Chris Ennew is Reader in Marketing at the University of Nottingham. Financial support for the CMBOR from Barclays Development Capital Limited and Touche Ross Corporate Finance, and from the Institute of Credit Management, is gratefully acknowledged. The authors thank Michael Hay, Saul Estrin and Mark Bleackleyfor comments on an earlier draft.
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  • Nick Wilson,

    1. Mike Wright is Professor of Financial Studies and Director of the Centre for Management Buy-out Research (CMBOR) at the University of Nottingham. Nick Wilson is ICM Professor of Credit Management at the University of Bradford. Ken Robbie is Research Fellow at the CMBOR, and Chris Ennew is Reader in Marketing at the University of Nottingham. Financial support for the CMBOR from Barclays Development Capital Limited and Touche Ross Corporate Finance, and from the Institute of Credit Management, is gratefully acknowledged. The authors thank Michael Hay, Saul Estrin and Mark Bleackleyfor comments on an earlier draft.
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  • Ken Robbie,

    1. Mike Wright is Professor of Financial Studies and Director of the Centre for Management Buy-out Research (CMBOR) at the University of Nottingham. Nick Wilson is ICM Professor of Credit Management at the University of Bradford. Ken Robbie is Research Fellow at the CMBOR, and Chris Ennew is Reader in Marketing at the University of Nottingham. Financial support for the CMBOR from Barclays Development Capital Limited and Touche Ross Corporate Finance, and from the Institute of Credit Management, is gratefully acknowledged. The authors thank Michael Hay, Saul Estrin and Mark Bleackleyfor comments on an earlier draft.
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  • Chris Ennew

    1. Mike Wright is Professor of Financial Studies and Director of the Centre for Management Buy-out Research (CMBOR) at the University of Nottingham. Nick Wilson is ICM Professor of Credit Management at the University of Bradford. Ken Robbie is Research Fellow at the CMBOR, and Chris Ennew is Reader in Marketing at the University of Nottingham. Financial support for the CMBOR from Barclays Development Capital Limited and Touche Ross Corporate Finance, and from the Institute of Credit Management, is gratefully acknowledged. The authors thank Michael Hay, Saul Estrin and Mark Bleackleyfor comments on an earlier draft.
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Abstract

In this paper we examine the reasons why buy-outs fail or need to be restructured and identify the implications for managers and investing institutions. It is evident that considerable attention needs to be given to assessing issues concerning industrial sectors, management and financing. In respect of the market, consideration needs to be given both to the nature of the market in which a particular buy-out finds itself and the firm's position within that market. Management is likely to have a crucial role in ensuring that the firm restructures and adapts to changing market circumstances.

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