 The value of financial freedom and ownership in opportunities of entrepreneurial harvestJoao Neves () International Journal of Entrepreneurship and Innovation Management, 2005, vol. 5, issue 5/6, 469-482 Abstract: Mergers and acquisitions can play a key role in consolidation of highly fragmented industries and in a company's on-going growth. From the entrepreneur's point of view, merging with a larger company or being acquired makes perfect sense when he finds it is the appropriate timing for capturing the value that has been created through the venture. This paper argues that the financial freedom of the entrepreneur and the non-existence of agency problems between managers and owners which reduce the myopic short times bias of managers are sources of value not reflected in the financial statements. The evidence is presented using the case study methodology in 12 opportunities of entrepreneurial harvest. Consequently, the study calls the attention of users of financial information to the dangers of traditional financial analysis and valuation methods without a deep understanding of the economic grounds of the entrepreneurial firm analysed. Keywords: entrepreneurship; entrepreneurial finance; mergers and acquisitions; small business valuation; due diligence; small businesses; small firms; financial freedom; ownership; financial analysis; market value. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijeima:v:5:y:2005:i:5/6:p:469-482 Access Statistics for this article More articles in International Journal of Entrepreneurship and Innovation Management from Inderscience Enterprises Ltd |
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