Frontiers of Entrepreneurship Research 1997 Edition Return to 1997 Topical Index Order hard copy editions of Frontiers of  Entrepreneurship Research by mail

THE SYNDICATION OF VENTURE CAPITAL DEALS: BUY–OUTS AND BUY–INS

Mike Wright, University of Nottingham

INTRODUCTION

TABLE 1

ANALYTICAL BACKGROUND

DATA AND ECONOMETRIC ISSUES

Definition of Variables

Econometric Considerations

Networking Issues

Qualitative Interviews

RESULTS

Background Analysis

TABLE 2

TABLE 3

Econometric Analysis

TABLE 4

TABLE 5

Risk

Venture Capital Firms

TABLE 6

Networking Between Venture Capital Firms

TABLE 7

Interview Responses

TABLE 8

CONCLUSIONS AND IMPLICATIONS

REFERENCES

ABSTRACT

This paper analyses the neglected issue of syndication using a sample of 1,999 venture–backed UK management buy–outs and buy–ins. Using logit analysis with EM imputation of missing values, the paper identifies investee risk characteristics, venture capital characteristics and control factors which influence the syndication decision, achieving an overall 89% correct classification rate. The study also analyses the intensity of syndication networks and finds evidence of greater intensity than for the US capital market.

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