ABSTRACT
This chapter shows how buyouts of mature firms are managed to create value drawing on the concept of resource orchestration. Acquisition capabilities of PE investors are important drivers of profitability and growth in divisional buyouts and of post-buyout efficiency improvement. The chapter utilizes the resource management model from D Sermon et al. to explore the resource management process in buyouts stemming from four main sources: divisional buyouts, family firm/private buyouts, secondary buyouts, and buyouts from receivership. The buyout literature since the late 1990s suggests this involves buyouts acquiring, accumulating, and divesting resources. The chapter examines and links the evidence from the strategy, management, and organizational changes after the buyout to the resource management model of Sermon et al. The management effort was primarily directed towards improving the existing business execution, thus stabilizing the firm on a solid economic basis as quickly as possible.
