Family Firms and Private Equity : A Collection of Essays on Value Creation, Negotiation, and Soft Factors

Family firms are of particular importance for many economies. We know little about family firm buyouts and how they are different from non-family firm buyouts. Oliver Ahlers investigates this under-researched topic. After a comprehensive literature review on family firm buyouts, the focus of his book is on the key steps of the investment process such as family firm valuation and negotiations between PE investors and family sellers. Additionally, it is investigated how “soft factors” such as trust, reputation or commitment could play an important role when PE and family firms interact. Throughout the book, differences between family and non-family firm buyouts are highlighted. Buyouts involve the acquisition of the total shares or a controlling stake in a company. Oliver Ahlers analyzes buyouts that involve family firms and private equity investors. The author starts with a comprehensive literature review on family firms, private equity, and buyouts. The focus of this book is on the key steps of the buyout process such as family firm valuation and negotiations. Additionally, it is investigated how soft factors such as affective commitment and trust could play a role in buyouts. Insights of this book are derived from a survey comprising almost 180 PE-backed buyouts in Europe. Contents - Research Overview on PE, Family Firms, and Buyouts - Valuation of Family Firms - Negotiations between PE Investors and Family Firm Sellers - Importance of Soft Factors throughout Dealmaking Target Groups - Researchers and students in the field of business management with a focus on private equity, family firms and management buyouts - Private equity managers, family business CEOs and managers or shareholders as well as advisors to family businesses The Author Dr. Oliver Ahlers wrote his dissertation under the supervision of Prof. Dr. Andreas Hack and Prof. Franz W. Kellermanns at the Institute for Family Businesses at WHU - Otto Beisheim School of Management, Vallendar. About the Editors The series Familienunternehmen und KMU is edited by Prof. Dr. Andreas Hack, Prof. Dr. Andrea Calabrò, Prof. Dr. Hermann Frank, Prof. Franz W. Kellermanns Ph. D. and Prof. Dr. Thomas Zellweger Front Matter....Pages I-XVIII Introduction....Pages 1-52 Research approach....Pages 53-69 Stepping into the buyer’s shoes: Looking at the value of family firms through the eyes of private equity....Pages 71-96 Opening the black box: Power in buyout negotiations and the moderating role of private equity specialization....Pages 97-128 Bargaining power in family firm buyouts: Does family influence make a difference?....Pages 129-157 Seller’s affective deal commitment – Buyout transactions as courtship....Pages 159-190 Conclusion....Pages 191-206 Back Matter....Pages 207-239