The purpose of the study by S. Zambelli is two-fold. First, the paper discusses the evolution of the Private Equity (PE) market in Italy, in relation to several changes in regulation (especially with reference to the financial assistance rule for a share-buyback purpose). Second, the paper empirically analyzes the economic impact of a new PE and LBO reform on financial markets and investor behavior (effective from January 2004). The empirical analysis underlying the paper is based on a novel and new database, hand-collected by the Author via a survey methodology, which consists of 162 PE transactions carried out during the 1999-2006 period. The economic impact of the new PE reform includes a comprehensive analysis of the entire private equity cycle, with a special focus on the following issues: - Impact on the private equity market; - Impact on the deal structure and forms of finance; - Impact on the adoption of convertible securities; - Impact on the governance of the target; - Impact on the evaluation process of the target firm. The Italian private equity and buyout market, whose transactions were previously prohibited and only recently legalized, offers a unique example in order to evaluate the impact of the new LBO law on investors' behavior.

Private Equity and Leveraged Buyouts in Italy. To Prohibit or Not to Prohibit, That is the Question

ZAMBELLI, SIMONA
2010

Abstract

The purpose of the study by S. Zambelli is two-fold. First, the paper discusses the evolution of the Private Equity (PE) market in Italy, in relation to several changes in regulation (especially with reference to the financial assistance rule for a share-buyback purpose). Second, the paper empirically analyzes the economic impact of a new PE and LBO reform on financial markets and investor behavior (effective from January 2004). The empirical analysis underlying the paper is based on a novel and new database, hand-collected by the Author via a survey methodology, which consists of 162 PE transactions carried out during the 1999-2006 period. The economic impact of the new PE reform includes a comprehensive analysis of the entire private equity cycle, with a special focus on the following issues: - Impact on the private equity market; - Impact on the deal structure and forms of finance; - Impact on the adoption of convertible securities; - Impact on the governance of the target; - Impact on the evaluation process of the target firm. The Italian private equity and buyout market, whose transactions were previously prohibited and only recently legalized, offers a unique example in order to evaluate the impact of the new LBO law on investors' behavior.
Private Equity. Fund Types, Risks and Returns, and Regulation
463
510
S. Zambelli
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11585/102321
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