Private Equity Investments in Family Businesses

Investments by private equity firms in family businesses are becoming increasingly relevant for both parties. In this work, change in the economic performance of family businesses due to private equity investment was examined in eight case studies. The results showed a neutral to positive change in performance when private equity houses acquired a majority stake in family businesses. In the case of minority holdings, no far-reaching change could be determined. The results also revealed that the majority holdings examined developed a context promoting the individual performance behaviour of management to a greater extent. This was 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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