Groh, A.P.; Liechtenstein, Heinrich von
How do investors in VC/PE funds pick their most attractive options? The 2009/2010 Global Venture Capital and Private Equity Country Attractiveness Index may help. In this dynamic guide, IESE professors and a team of researchers profile the attractiveness of 66 countries and speculate on how the crisis may affect their standing.
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Groh, A.P.; Liechtenstein, Heinrich von
It is a simple fact that VC-backed firms have more leverage to innovate and create more employment and growth than their peers. A strong capital flow is the cornerstone of any entrepreneurial endeavor in modern economics. Understanding this, this paper examines the criteria for investing in VC funds and determines the importance of why investors select certain funds. (Video available).
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Groh, A.P.; Henseleit, C.
Corporate tax code can be more complicated than quantum physics. Moreover, when a company merges or acquires another company, specialty tax shields become of utmost importance. IESE visiting professor Alexander Groh and Christoph Henseleit show that asset step-ups, or the readjustment of the value of an appreciated asset for tax purposes, allow the acquirer to increase the tax benefits from the acquired assets and, hence, also their valuation.
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Groh, A.P.; Liechtenstein, Heinrich von; Canela, Miguel Ángel
All an entrepreneur needs is a bright idea, a garage and a bit of private equity, right? Easier said than done. It is the last of these - the seed money - that can be the hardest to come by, mainly dependent on the attractiveness of the country for investing. A new paper by Alexander Groh, Heinrich Lichtenstein and Miguel A. Canela reveals investors' top concerns when doling out risk capital. Depending on how well the country in question deals with protection of property rights, deal flow and corruption may well determine if the entrepreneur gets the desired backing.
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Groh, A.P.; Liechtenstein, Heinrich von; Canela, Miguel Ángel
The countries of Central Eastern Europe (CEE) should be highly attractive to institutional investors in Venture Capital and Private Equity Limited Partnerships. After all, the region is booming: The level of education is high, institutional structures are working, policies promote innovation and growth estimates rise above the European average. Yet, the supply of risk capital to the region remains surprisingly low. Seeking to unfold this mystery is the paper "Limited Partners' Perceptions of the Central Eastern European Venture Capital and Private Equity Market" by Alexander P. Groh, Heinrich Liechtenstein and Miguel A. Canela, which concludes that it's all about investor perceptions.
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Groh, A.P.; Liechtenstein, Heinrich von
Hungary is the most attractive Central Eastern Europe nation, according to a ranking conducted by Heinrich von Liechtenstein and Alexander Peter Groh (IESE), and Karsten Lieser, of SCM Strategic Capital Management AG.
The academic paper "The Attractiveness of Central Eastern European Countries for Venture Capital and Private Equity Investors" analyzes the strengths and weaknesses of each of the EU's 10 newest members to rank their "attractiveness" to investors. Hungary is followed closely by Slovenia and by the Baltic States of Estonia, Latvia and Lithuania.
The report points out that, though still in a period of profound transition, Central Eastern Europe provides fresh, untapped opportunities for Venture Capital and Private Equity investors, who appreciate the region's favorable taxation and growth expectations, among other factors.
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Groh, A.P.; Baule, R.; Gottschalg, Oliver
Just imagine that the next time a corporation decides to buyout another company through a large ratio of debt and equity, the risk-adjusted returns have already been calculated and presented in a very neat and simplified form. If that were possible, the company's boss need only push a button and a complicated structure of pre-payable bank loans, private equity bonds and the acquired company's free cash flow are orchestrated in a beautiful play of hostile-takeover bliss. Modern economics still has a way to go before it becomes that simple, but in the paper "Measuring Idiosyncratic Risks In Leveraged Buyout Transactions", Alexander Peter Groh, Rainer Baule and Oliver Gottschalg use a contingent claim analysis model (CCA) to calculate implied idiosyncratic risk in leveraged buyouts.
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