Value creation drivers in a secondary buyout – the acquisition of Brenntag by BC Partners

2014 ◽  
Vol 6 (3) ◽  
pp. 278-301 ◽  
Author(s):  
Ann-Kristin Achleitner ◽  
Christian Figge ◽  
Eva Lutz
Keyword(s):  
Value Creation ◽  
Private Equity ◽  
Single Case ◽  
Secondary Data ◽  
Structured Interviews ◽  
Content Type ◽  
Early Exit ◽  
Management Incentives ◽  
Exit Route ◽  
Depth Analysis

Purpose – The purpose of this paper is to identify specific drivers of value creation in secondary buyouts. While this type of private equity deal has risen in importance in recent years, it is not yet well understood. Through an in-depth analysis of the acquisition of Brenntag by BC Partners, we develop propositions on the value creation profile of secondary buyouts. Design/methodology/approach – We use a single case study design to explore the information-rich context of a secondary buyout. The Brenntag case epitomizes the development of a company from forming part of a large conglomerate to being private-equity owned after the primary and secondary buyout, to its final disposition of public listing. Our analysis is based on ten semi-structured interviews with key protagonists and observers, as well as analysis of primary company data and additional secondary data sources. Findings – We propose that even if the investment management and monitoring skills of the primary and secondary private equity group are similar, there is still potential to realize operational improvements in a secondary buyout, due to either early exit of the primary private equity group or measures that further enhance management incentives. In addition, the Brenntag case shows that low information asymmetries can lead to higher leverage and that opportunities for multiple expansions are limited in secondary buyouts. Originality/value – While a secondary buyout has become a common exit route in recent years, we are the first to undertake an in-depth case analysis of a secondary buyout. Our study helps researchers and practitioners enhance their understanding of drivers behind the value creation profile of secondary buyouts.

scholarly journals Programming for holistic value creation: collaboration, coordination and perception

2019 ◽  
Vol 12 (1) ◽  
pp. 71-94
Author(s):  
Markus Laursen ◽  
Catherine P. Killen
Keyword(s):  
Decision Making ◽  
Value Creation ◽  
Cultural Context ◽  
Single Case ◽  
Engaged Scholarship ◽  
Public And Private ◽  
Content Type ◽  
Depth Analysis ◽  
Decision Logic ◽  
Combination Of Logics

PurposeThe purpose of this paper is to holistically explore value creation approaches in a program of cultural projects to inform the practices of project/program management in both public and private sectors.Design/methodology/approachThe paper brings together the literature on project, program and portfolio value creation to inform a case study conducted with engaged scholarship research methods.FindingsThree themes of value creation are revealed: managing collaboration, coordination and perception. Effectuation and causation are both observed, demonstrating that a combination of logics underpin decision making in projects.Research limitations/implicationsThe results are based on a single case in a cultural context. Further research is needed to determine whether the observed value creation themes apply more generally, and to explore more deeply the use of logics associated with entrepreneurship in project decision making.Practical implicationsThe study reveals several non-commercial aspects of value creation that may play a role across a range of project environments. Practitioners may be able to recognize a wider range of value creation and to better nurture these previously unacknowledged types of value.Originality/valueThe study provides new insights on value and decision logic through in-depth analysis of value creation in a program of culture projects.

scholarly journals Boundary negotiations: a paradox theoretical approach for efficient and flexible modular systems

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Philip Davies ◽  
Glenn Parry ◽  
Laura Anne Phillips ◽  
Irene C.L. Ng
Keyword(s):  
Process Model ◽  
Modular Design ◽  
Single Case ◽  
Secondary Data ◽  
Structured Interviews ◽  
Content Type ◽  
Modular Systems ◽  
Boundary Ambiguity ◽  
Firm Boundary

PurposeThe purpose of this paper is to explore the interplay between firm boundary decisions and the management of both efficiency and flexibility and the implications this has for modular design in the provision of advanced services.Design/methodology/approachA single case study in the defence industry employs semi-structured interviews supplemented by secondary data. Data are analysed using thematic analysis.FindingsThe findings provide a process model of boundary negotiations for the design of efficient and flexible modular systems consisting of three phases; boundary ambiguity, boundary defences and boundary alignment.Practical implicationsThe study provides a process framework for boundary negotiations to help organisations navigate the management of both-and efficiency and flexibility in the provision of advanced services.Originality/valueDrawing upon modularity, paradox and systems theory, this article provides novel theoretical insight into the relationship between firm boundary decisions and the management of both-and efficiency vs. flexibility in the provision of product upgrade services.

Offsite construction skills evolution: an Australian case study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Buddhini Ginigaddara ◽  
Srinath Perera ◽  
Yingbin Feng ◽  
Payam Rahnamayiezekavat
Keyword(s):  
Construction Industry ◽  
Single Case ◽  
Three Dimensional ◽  
Structured Interviews ◽  
Content Type ◽  
Project Coordinator ◽  
Depth Analysis ◽  
Building Information ◽  
Specific Skill

Purpose The construction industry is currently responding to pressures of industrialisation happening across all sectors. Consequently, offsite construction (OSC) has become a vehicle to achieve industrialisation. This requires changes in traditional construction processes resulting in possible changes in construction skill requirements. Accordingly, the purpose of this study is to identify and review prevailing OSC practices and skills in the Australian construction industry. This study aims to critically analyse the existing skill profile classifications through a single case study and identify the need for an OSC specific skill classification. Design/methodology/approach This study follows a case study design, with an in-depth analysis of a single construction project. Only one case study was studied because scientifically, one example was enough to prove that the prevailing skill classifications do not represent OSC skills in a modern context. Data was retrospectively collected through semi-structured interviews of project stakeholders representing design, manufacture and assembly. Content analysis was conducted to analyse the collected data and produce findings. Findings This study identifies the inadequacy of the existing classification system, unavailability and the need of OSC specific skill categorisation. It highlights new skills that enter OSC; building information modelling engineer, three-dimensional draftsperson, OSC project manager and project coordinator, which are not identified in the available Australian skill classifications. These, together with existing skills need to be carved in to create a new skill classification. Originality/value This study is the first of its kind where a comprehensive OSC project is evaluated as a case study to determine OSC skill classification requirements in Australia.

Alignment capabilities of big data’s value creation in the context of service delivery processes

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Morten Brinch ◽  
Jan Stentoft ◽  
Dag Näslund
Keyword(s):  
Big Data ◽  
Value Creation ◽  
Single Case ◽  
Organization Performance ◽  
Structured Interviews ◽  
Turbine Generator ◽  
Content Type ◽  
Wind Turbine Generator ◽  
Service Supply Chains

Purpose While big data creates business value, knowledge on how value is created remains limited and research is needed to discover big data’s value mechanism. The purpose of this paper is to explore value creation capabilities of big data through an alignment perspective. Design/methodology/approach The paper is based on a single case study of a service division of a large Danish wind turbine generator manufacturer based on 18 semi-structured interviews. Findings A strategic alignment framework comprising human, information technology, organization, performance, process and strategic practices are used as a basis to identify 15 types of alignment capabilities and their inter-dependent variables fostering the value creation of big data. The alignment framework is accompanied by seven propositions to obtain alignment of big data in service processes. Research limitations/implications The study demonstrates empirical anchoring of how alignment capabilities affect a company’s ability to create value from big data as identified in a service supply chain. Practical implications Service supply chains and big data are complex matters. Therefore, understanding how alignment affects a company’s ability to create value of big data may help the company to overcome challenges of big data. Originality/value The study demonstrates how value from big data can be created following an alignment logic. By this, both critical and complementary alignment capabilities have been identified.

Developing a model of vendor rating to manage quality in the supply chain

2019 ◽  
Vol 11 (1) ◽  
pp. 34-52 ◽  
Author(s):  
Gilberto Santos ◽  
Federica Murmura ◽  
Laura Bravi
Keyword(s):  
Supply Chain ◽  
Single Case ◽  
Secondary Data ◽  
Objective Evaluation ◽  
Time Frame ◽  
Structured Interviews ◽  
Gamma Model ◽  
Content Type ◽  
Vendor Rating ◽  
The Relationship

PurposeThis paper aims to present a model developed by an Italian company, Gamma, that produces technologically high-precision components, with the objectives of defining a model of vendor rating to improve companies’ management and quality within the supply chain.Design/methodology/approachThe research has been developed through a qualitative approach, based on a longitudinal single case study. Two semi-structured interviews have been carried out with the company’s Quality Manager in September 23 and October 31, 2016. Relevant secondary data were also used, such as company reports and their website.FindingsOwing to the implementation of the Gamma model, the company is committed to the prudent selection of its partners and in establishing lasting relationships of mutual benefit with them. The termination of the relationship with suppliers is therefore rare; monitoring periods and improvement of suppliers are preferred. The Gamma model and its suppliers jointly undertake corrective actions that have to be implemented within a defined time frame.Practical implicationsEstablishing criteria for an objective evaluation of suppliers could be directly or indirectly related to the quality of the final product, and greatly affects the same. This model has been effective for the identification of less performing suppliers that have to be subjected to improvement and audit plans.Originality/valueThis model allows the assignment of penalties or rewards, identifies which suppliers to direct audits and improvement plans, with which to end the relationship and with which to establish a relationship of integration and direct involvement.

Attitudes towards risk and decision-making within local government

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mairead Grimley ◽  
Kevin John Burnard
Keyword(s):  
Decision Making ◽  
Local Governments ◽  
Online Survey ◽  
Public Involvement ◽  
Local Authority ◽  
Single Case ◽  
Secondary Data ◽  
Structured Interviews ◽  
Content Type

PurposeThis case study aims to explore the perceptions and attitudes towards risk within a UK local authority and the subsequent effects on decision-making. Through a qualitative analysis of both primary and secondary data, this study advances current understanding of the complex relationships between risk and decision-making. The study concludes by suggesting how local governments may better provide value to constituents.Design/methodology/approachThis research follows a single case study approach. Data were collected through both a focused online survey and semi-structured interviews. Respondents were selected through purposive sampling in order to capture direct insights and understanding of the concepts under consideration. The study focuses on a single local authority within the UK.FindingsBuilding on extant literature, this case study highlights both the individual and organisational considerations towards risk perception. Following the analysis of collected data, the study highlights the influence of risk aversion and public involvement within decision-making.Originality/valueBy aiming to improve and advance understanding of risk and decision-making in a local authority setting, the relevance of this research may be wider than internal organisational structures. The study provides recommendations for further research towards facilitating the inclusion of the citizen within decision-making processes.

Value creation in SME private equity buy-outs

2017 ◽  
Vol 9 (1) ◽  
pp. 2-33 ◽  
Author(s):  
Alexander D.F. Lahmann ◽  
Wiebke Stranz ◽  
Vivek K. Velamuri
Keyword(s):  
Value Creation ◽  
Private Equity ◽  
Single Case ◽  
Abnormal Returns ◽  
Single Case Study ◽  
Content Type ◽  
Common Value ◽  
Multiple Case ◽  
Multiple Case Studies

Purpose The purpose of this paper is to analyze specific levers of value creation in small and mid-size private equity deals. Private equity firms add value through various types of value creation measures in their portfolio firms to achieve abnormal returns. Established literature has shown that value creation measures differ across portfolio firms due to the different development stages of the firm and different buy-out types. Despite the fact that the majority of deals belongs to the small and mid-size segment, prior studies mostly analyzed large private equity buy-outs or mixed samples. Design/methodology/approach To explore value generation measures in small and mid-size buy-outs, a single case study format was applied studying the carve-out of QUNDIS from Siemens Building Technologie by CAPCELLENCE as an exceptional successfully private equity deal within this segment. Findings The analysis shows that operational and governance improvements are common value creation measures in all buy-outs. The results suggest a lower leverage for smaller private equity deals indicating that financial engineering is less important. Furthermore, in small and mid-size deals, the strategic focus is growth contrary to downsizing and refocusing in large buy-outs. Research limitations/implications Results of a single case study should be generalized cautiously, as they are perceived as less robust compared to empirical methods or multiple case studies. However, this method is appropriate for explorative studies. Originality/value The paper is original in exploring certain value creation measures applied by private equity firms in their portfolio companies in the small and mid-size segment.

scholarly journals Recovering the corporate brand: lessons from an industry crisis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Julie Robson ◽  
Jillian Dawes Farquhar
Keyword(s):  
Financial Services ◽  
Ethical Issues ◽  
Single Case ◽  
Secondary Data ◽  
Corporate Brand ◽  
Content Type ◽  
Depth Analysis ◽  
Stakeholder Marketing ◽  
Rich Data ◽  
Stakeholder Interactions

Purpose Building on crisis management studies, this study aims to advance research on brand recovery from the existing focus on product brand/customer dyad into stakeholder marketing and corporate branding. Design/methodology/approach This study uses a single case of industry-dominant corporate brand in an enriched context through in-depth analysis of industry informant and secondary data. Findings The paper uncovers detail of corporate brand and stakeholder interactions directed towards recovering corporate brand and restoring trust in the industry. Research limitations/implications This study offers an evidence-based framework of stakeholder interactions designed to support corporate brand recovery (CBR). The rich data are bounded within a single case. Practical implications Framework illustrates the importance of drawing on stakeholders in CBR, particularly in an industry crisis, emphasises trust restoration and reveals the peripheral role of customers in CBR. Social implications This study points to significance of stakeholder networks, particularly in insurance and financial services, in addressing social and ethical issues related to corporate misdeeds is identified. Originality/value This study makes noteworthy contribution to brand recovery research in two ways: firstly, by investigating the recovery of brands at corporate level and, secondly, by detailing the interactions between corporate brand and industry stakeholders in recovering the brand within a stricken industry.

scholarly journals Digital technologies, sustainable open innovation and shared value creation: evidence from an Italian agritech business

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Riccardo Rialti ◽  
Anna Marrucci ◽  
Lamberto Zollo ◽  
Cristiano Ciappei
Keyword(s):  
Knowledge Management ◽  
Supply Chain ◽  
Value Creation ◽  
Open Innovation ◽  
New Technologies ◽  
Shared Value ◽  
Structured Interviews ◽  
Content Type ◽  
Depth Analysis ◽  
Management Capabilities

Purpose The aim of this research was to explore the mechanisms underpinning open innovation (OI) success and its sustainability in agrifood businesses. First, the authors explored the importance of 4.0 technologies in data collection from crowds, subsequently examining how new technologies might drive forward the development of collaborative strategies with suppliers. Reductions in resource wasting were observed. The role of 4.0 technologies in increasing supply chain sustainability overall was the main focus of the study.Design/methodology/approach This research builds on a single inductive case study method. The authors performed an in-depth analysis of data from an Italian agritech distributor. Data – aside from multiple semi-structured interviews – were collected via several different sources. The results have been summarized in an integrated holistic conceptual framework.Findings The findings show that 4.0 technologies allow for swift information exchanges between consumers, the agritech business and suppliers. As a result, consumers might demand new products and, consequently, the agritech business can arrange new offerings with suppliers, completing the OI and shared value creation circle. Likewise, the possibility of adopting a just-in-time approach of sorts may reduce the wasting of resources. The absorptive capacities and knowledge management capabilities of the agritech business play a fundamental role in OI performance, sustainability and success.Originality/value This research seminally explores how 4.0 technologies and knowledge management techniques can enable OI in agrifood businesses. Additionally, the ways in which OI may foster the development of sustainability-orientated supply chain strategies have been conceptualized.

The impact of intellectual capital on firm performance: a study of Indian firms listed in COSPI

2018 ◽  
Vol 19 (5) ◽  
pp. 935-964 ◽  
Author(s):  
Neha Smriti ◽  
Niladri Das
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Value Creation ◽  
Generalized Method Of Moments ◽  
Value Added ◽  
Secondary Data ◽  
Share Price ◽  
Content Type ◽  
Listed Firms ◽  
The Impact

Purpose The purpose of this paper is to examine the effect of intellectual capital (IC) on financial performance (FP) for Indian companies listed on the Centre for Monitoring Indian Economy Overall Share Price Index (COSPI). Design/methodology/approach Hypotheses were developed according to theories and literature review. Secondary data were collected from Indian companies listed on the COSPI between 2001 and 2016, and the value-added intellectual coefficient (VAIC) of Pulic (2000) was used to measure IC and its components. A dynamic system generalized method of moments (SGMM) estimator was employed to identify the variables that significantly contribute to firm performance. Findings Indian listed firms appear to be performing well and efficiently utilizing their IC. Overall, human capital had a major impact on firm productivity during the study period. Furthermore, the empirical analysis showed that structural capital efficiency and capital employed efficiency were equally important contributors to firm’s sales growth and market value. The growing importance of the contribution of IC to value creation was consistently reflected in the FP of these Indian companies. Practical implications This study has robust theoretical grounds and employs a validated methodology. The present study extends knowledge of IC among academicians and managers and highlights its contribution to value creation. The findings may help stakeholders and policymakers in developing countries properly reallocate intellectual resources. Originality/value This study is the first study to evaluate IC and its relationship with traditional measures of firm performance among Indian listed firms using dynamic SGMM and VAIC models.

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