Login | Register

Private equity investment in family firms: The role of stake size and deal syndication

Title:

Private equity investment in family firms: The role of stake size and deal syndication

Dawson, Alexandra and Barrédy, Céline (2018) Private equity investment in family firms: The role of stake size and deal syndication. Venture Capital . ISSN 1369-1066

[img]
Text (application/pdf)
Dawson_Barredy_VC_2018.pdf - Accepted Version
Restricted to Repository staff only until 10 March 2020.
Available under License Spectrum Terms of Access.
352kB

Official URL: https://doi.org/10.1080/13691066.2018.1516358

Abstract

Private equity (PE) firms are increasingly investing in family firms, as these organizations look to grow and deal with ownership succession. In this study we contribute to the developing entrepreneurship literature on PE investment by addressing the heterogeneity of PE firms. We distinguish between private independent and captive PE firms in order to understand whether different types of PE firms select different (i.e. family- vs. non-family) firms as their target. We also look at whether the relationship between the type of PE firm and likelihood of investing in a family firm (vs. a non-family firm) is moderated by two factors, which are related to risk reduction in PE deals, namely size of equity stake and deal syndication. Our analysis of all 902 private equity deals that took place in Canada between 2009 and 2014 indicates that family firms are not the preferred investment choice for private independent private equity firms, although taking a minority stake positively moderates this relationship.

Divisions:Concordia University > John Molson School of Business > Management
Item Type:Article
Refereed:Yes
Authors:Dawson, Alexandra and Barrédy, Céline
Journal or Publication:Venture Capital
Date:10 September 2018
Funders:
  • Desjardins Centre for Innovation in Business Finance
  • Concordia Undergraduate Research Award
Digital Object Identifier (DOI):10.1080/13691066.2018.1516358
ID Code:984430
Deposited By: ALEXANDRA DAWSON
Deposited On:20 Sep 2018 20:36
Last Modified:26 Feb 2019 17:25
All items in Spectrum are protected by copyright, with all rights reserved. The use of items is governed by Spectrum's terms of access.

Repository Staff Only: item control page

Downloads per month over past year

Back to top Back to top