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Title: Private equity and the flight of the phoenix four – the collapse of MG Rover in the UK
Authors: Bailey, David
Clark, Ian Arthur
De Ruyter, Alex
First Published: 11-Aug-2010
Publisher: Oxford University Press on behalf of the Cambridge Political Economy Society
Citation: Cambridge Journal of Regions, Economy and Society, 2010, 3 (3), pp. 367-382
Abstract: 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.
DOI Link: 10.1093/cjres/rsq021
ISSN: 1752-1378
eISSN: 1752-1386
Type: Journal Article
Rights: Copyright © 2010, the authors.
Description: Full text of this item is not currently available on the LRA. The final published version may be available through the links above.
Appears in Collections:Published Articles, School of Management

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