Work

Barbarians at the Store? Private Equity, Products, and Consumers

Year: 2020

Type: report

Abstract: We investigate the effects of private equity on product markets using price and sales data for an extensive number of consumer products.Following a buyout, target firms increase sales 50% more than matched control firms.Price increases-roughly 1% on existing products-do not drive this growth.The launch of new products and geographic expansion do.Competitors lose shelf space and marginally raise prices.Results for public vs. private targets, during and after the financial crisis, and in industries that vary in structure suggest private equity tailors strategies to the environment, eases financial constraints, and provides expertise to manage growth.

Source: National Bureau of Economic Research

DOI: 10.3386/w27435

Authors: Cesare Fracassi, Alessandro Previtero, Albert Sheen

Institutions: The University of Texas at Austin, National Bureau of Economic Research, Indiana University Bloomington, Indiana University, University of Oregon

Language: English

Topic: Private Equity and Venture Capital

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2900915896

Cites: 29

Cited by: 58

Related to: 10