Leveraged buyouts in Spain: organic growth or industry consolidation?

Private equity controlled firms are often utilized as platforms for the consolidation of industries. Using a sample of Spanish firms acquired in leveraged buyouts, we argue that add-on acquisitions are distorting conclusions presented in the literature. For instance, Boucly et al. (2011), Bernstein...

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Detalles Bibliográficos
Autores: Ayash, Brian, Lizarraga Dallo, Fermín, Sánchez Alegría, Santiago
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2025
País:España
Institución:Universidad Pública de Navarra
Repositorio:Academica-e. Repositorio Institucional de la Universidad Pública de Navarra
OAI Identifier:oai:academica-e.unavarra.es:2454/54607
Acceso en línea:https://hdl.handle.net/2454/54607
Access Level:acceso embargado
Palabra clave:Leveraged buyouts
LBOs
Private equity
Growth equity buyouts
Bankruptcy
Liquidation
Secondary buyouts
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spelling Leveraged buyouts in Spain: organic growth or industry consolidation?Ayash, BrianLizarraga Dallo, FermínSánchez Alegría, SantiagoLeveraged buyoutsLBOsPrivate equityGrowth equity buyoutsBankruptcyLiquidationSecondary buyoutsPrivate equity controlled firms are often utilized as platforms for the consolidation of industries. Using a sample of Spanish firms acquired in leveraged buyouts, we argue that add-on acquisitions are distorting conclusions presented in the literature. For instance, Boucly et al. (2011), Bernstein et al. (2019), Battistin et al. (2017) and others associate buyouts, and specifically leveraged buyouts, with growth. We present a simple but novel approach to isolate organic growth and observe that depreciation is greater than capital expenditures. While Bansraj et al. (2022) documents that in Europe, organic sales growth is negative, and acquisitions mask this decline, we focus on investment. Our results show that industry consolidation is also masking a decline in economically important investment. We also study outcomes, comparing the bankruptcy rate in our sample to a propensity score matched set of control firms. We find that leveraged buyouts in Spain are accelerating industry consolidation without visible operating performance improvements or long-term value creation.ElsevierGestión de EmpresasEnpresen KudeaketaInstitute for Advanced Research in Business and Economics - INARBE2025info:eu-repo/semantics/articleinfo:eu-repo/semantics/acceptedVersionapplication/pdfhttps://hdl.handle.net/2454/54607reponame:Academica-e. Repositorio Institucional de la Universidad Pública de Navarrainstname:Universidad Pública de NavarraInglés© 2025 Elsevier Inc. This manuscript version is made available under the CC-BY-NC-ND 4.0https://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/embargoedAccessoai:academica-e.unavarra.es:2454/546072026-06-17T12:41:47Z
dc.title.none.fl_str_mv Leveraged buyouts in Spain: organic growth or industry consolidation?
title Leveraged buyouts in Spain: organic growth or industry consolidation?
spellingShingle Leveraged buyouts in Spain: organic growth or industry consolidation?
Ayash, Brian
Leveraged buyouts
LBOs
Private equity
Growth equity buyouts
Bankruptcy
Liquidation
Secondary buyouts
title_short Leveraged buyouts in Spain: organic growth or industry consolidation?
title_full Leveraged buyouts in Spain: organic growth or industry consolidation?
title_fullStr Leveraged buyouts in Spain: organic growth or industry consolidation?
title_full_unstemmed Leveraged buyouts in Spain: organic growth or industry consolidation?
title_sort Leveraged buyouts in Spain: organic growth or industry consolidation?
dc.creator.none.fl_str_mv Ayash, Brian
Lizarraga Dallo, Fermín
Sánchez Alegría, Santiago
author Ayash, Brian
author_facet Ayash, Brian
Lizarraga Dallo, Fermín
Sánchez Alegría, Santiago
author_role author
author2 Lizarraga Dallo, Fermín
Sánchez Alegría, Santiago
author2_role author
author
dc.contributor.none.fl_str_mv Gestión de Empresas
Enpresen Kudeaketa
Institute for Advanced Research in Business and Economics - INARBE
dc.subject.none.fl_str_mv Leveraged buyouts
LBOs
Private equity
Growth equity buyouts
Bankruptcy
Liquidation
Secondary buyouts
topic Leveraged buyouts
LBOs
Private equity
Growth equity buyouts
Bankruptcy
Liquidation
Secondary buyouts
description Private equity controlled firms are often utilized as platforms for the consolidation of industries. Using a sample of Spanish firms acquired in leveraged buyouts, we argue that add-on acquisitions are distorting conclusions presented in the literature. For instance, Boucly et al. (2011), Bernstein et al. (2019), Battistin et al. (2017) and others associate buyouts, and specifically leveraged buyouts, with growth. We present a simple but novel approach to isolate organic growth and observe that depreciation is greater than capital expenditures. While Bansraj et al. (2022) documents that in Europe, organic sales growth is negative, and acquisitions mask this decline, we focus on investment. Our results show that industry consolidation is also masking a decline in economically important investment. We also study outcomes, comparing the bankruptcy rate in our sample to a propensity score matched set of control firms. We find that leveraged buyouts in Spain are accelerating industry consolidation without visible operating performance improvements or long-term value creation.
publishDate 2025
dc.date.none.fl_str_mv 2025
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/acceptedVersion
format article
status_str acceptedVersion
dc.identifier.none.fl_str_mv https://hdl.handle.net/2454/54607
url https://hdl.handle.net/2454/54607
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.rights.none.fl_str_mv © 2025 Elsevier Inc. This manuscript version is made available under the CC-BY-NC-ND 4.0
https://creativecommons.org/licenses/by-nc-nd/4.0/
info:eu-repo/semantics/embargoedAccess
rights_invalid_str_mv © 2025 Elsevier Inc. This manuscript version is made available under the CC-BY-NC-ND 4.0
https://creativecommons.org/licenses/by-nc-nd/4.0/
eu_rights_str_mv embargoedAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:Academica-e. Repositorio Institucional de la Universidad Pública de Navarra
instname:Universidad Pública de Navarra
instname_str Universidad Pública de Navarra
reponame_str Academica-e. Repositorio Institucional de la Universidad Pública de Navarra
collection Academica-e. Repositorio Institucional de la Universidad Pública de Navarra
repository.name.fl_str_mv
repository.mail.fl_str_mv
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