Frontiers of Entrepreneurship Research
1997 Edition

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

Brian Chiplin, University of Nottingham

Ken Robbie, University of Nottingham

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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