Work

Family-Firm Buyouts, Private Equity, and Strategic Change

Year: 2009

Type: article

Abstract: When no suitable family successor can be identified, private family firm owners may opt for a MBO or MBI. We explore the strategic orientation of former private family firms pre- and post-MBO/I. We utilize a unique hand-collected representative sample of 104 MBO/Is located across Europe. Greater scope for efficiency gains and growth/expansion was found in cases where the founder was present at time of buy-out, where no managers with equity stakes or non-executive directors were employed pre-buy-out and where the private equity investor and management were involved in succession planning. TOPICS:Private equity, developed, manager selection

Source: The Journal of Private Equity

DOI: 10.3905/jpe.2009.12.2.007

Authors: Louise Scholes, Mike Wright, Paul Westhead, Hans Bruining, Oliver Kloeckner

Institutions: University of Nottingham, Erasmus University Rotterdam, Durham University, Technical University of Munich

Language: English

Topic: Family Business Performance and Succession

Subfield: Organizational Behavior and Human Resource Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W3124939443

FWCI: 3.581

Cites: 2

Cited by: 32

Related to: 10