RT Journal Article
SR Electronic
T1 Family-Firm Buyouts, Private Equity, and Strategic Change
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 7
OP 18
DO 10.3905/JPE.2009.12.2.007
VO 12
IS 2
A1 Louise Scholes
A1 Mike Wright
A1 Paul Westhead
A1 Hans Bruining
A1 Oliver Kloeckner
YR 2009
UL https://pm-research.com/content/12/2/7.abstract
AB 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