Private Equity Investments in Family Businesses

Investments by private equity firms in family businesses are becoming increasingly relevant for both parties. To take this area into account, the change in the economic performance of family businesses in the course of a private equity investment was examined in eight case studies. The results show a neutral to positive change in performance when private equity houses acquire a majority stake in family businesses. In the case of minority holdings, no far-reaching change could be determined. The results also show that the majority holdings examined develop a context that promotes the individual performance behavior of management to a greater extent. This is primarily due to the fact that these companies are increasingly opening up to environmental and market conditions and adapting new modes of operation.

Title and subtitles Private Equity Investments in Family Businesses - An Empirical Investigation of the Organizational Metamorphosis
Author Götz Müller
Year 2013
Keywords Private Equity
Type WIFU-Series

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