Private equity and the flight of the phoenix four-- the collapse of MG Rover in the UK

Datos Bibliográficos

ID12913613
AutoresDavid Bailey (0000-0002-1956-0556, Coventry University), Ian Clark (0000-0001-7698-2715, University of Birmingham), A De Ruyter (0000-0002-7965-6445, University of the West of Scotland)
Año2010
Volumen3
Número3
Páginas367-382
Fecha de publicación2010-08-11
Peer ReviewedSí
Open AccessNo
TipoARTICLE
RevistaCambridge Journal of Regions Economy and Society (JOURNAL)
Identificadores de la revistaISSN: 1752-1386 • E-ISSN: 1752-1378
EditorialOxford University Press (OUP) (PUBLISHER)
DOI10.1093/cjres/rsq021
OpenAlexW2155903243
IdiomaEN
Citas recibidas5
Referencias citadas12

This paper explores the nature of the co-called ‘private equity business model' (PEBM) and assesses its shortcomings, using the illustrative example of the role of private equity in structuring the finance and subsequent collapse of MG Rover, as the automotive industry has been a significant destination for private equity financing. The paper outlines the nature of the PEBM. It then details how the PEBM extracts value, before stressing how this can affect workers in a portfolio business. We argue that the emergence of the PEBM changes the basis of competitive rules in organizations and the running of erstwhile going concerns, necessitating a need for further regulation—particularly, how to secure wider stakeholder oversight without reducing the efficiency of PEBM concerns

Business · Economics · Equity (law · Industrial organization · Management · Phoenix · Political science · Portfolio · Private equity · Private equity firm · Private equity fund · Stakeholder · Structuring · Housing, Finance, and Neoliberalism · Private Equity and Venture Capital · State Capitalism and Financial Governance · Finance · Law