On private equity exits of family firms in the German Mittelstand

Florian Kreer, René Mauer, Steffen Strese () and Malte Brettel
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Florian Kreer: RWTH Aachen University
René Mauer: ESCP Europe
Steffen Strese: RWTH Aachen University
Malte Brettel: RWTH Aachen University

Journal of Business Economics, 2018, vol. 88, issue 3, No 6, 503-529

Abstract: Abstract There is limited existing research on factors influencing the preferences of family firms’ owner-managers for specific modes of external transitions of ownership such as private equity. In a multi-method approach, this study qualitatively gathers the attitudinal beliefs of family firms’ owner-managers about pursuing the private equity succession route. Four classes of beliefs are identified: perceptions of (1) firm continuance; (2) opportunities for firm development; (3) loss of firm ethos; and (4) commercial firm risks. These classes are then tested quantitatively with a sample of 195 family firm owner-managers among the German Mittelstand. Our results partially confirm the qualitative findings: the perception of positive development opportunities and the perception of commercial firm risks explain owner-managers’ intention to pursue a private equity succession, mediated through attitude. Overall, attitude emerges as the cornerstone in this context-specific intention model.

Keywords: Family firm succession; Managerial decisions; Private equity; Mittelstand; Theory of planned behavior (search for similar items in EconPapers)
JEL-codes: D10 G32 M14 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s11573-017-0870-8

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