Investigating Decision-Making Criteria of Private Equity Investors in Family Firms

12 Pages Posted: 17 Dec 2008 Last revised: 10 Mar 2009

See all articles by Alexandra Dawson

Alexandra Dawson

Concordia University, Quebec - John Molson School of Business

Date Written: December 3, 2008

Abstract

This paper examines decision-making models used by private equity investors in their selection of family firms. Building on literature on investment criteria at start-up stage, a series of hypotheses is put forward, based on decision-making, strategic management and buyout theories. The theoretical model is tested through an experimental design for which data have been collected among 41 respondents based in Italy. Findings are analysed using hierarchical linear models, in order to investigate which criteria are used, assess their relative importance and test whether decision-making models are individual-specific or influenced by the firm individuals work for.

Keywords: Entrepreneurship

JEL Classification: M13

Suggested Citation

Dawson, Alexandra, Investigating Decision-Making Criteria of Private Equity Investors in Family Firms (December 3, 2008). Frontiers of Entrepreneurship Research 2006; Frontiers of Entrepreneurship Research 2006. Available at SSRN: https://ssrn.com/abstract=1310912 or http://dx.doi.org/10.2139/ssrn.1310912

Alexandra Dawson (Contact Author)

Concordia University, Quebec - John Molson School of Business ( email )

1455 de Maisonneuve Blvd. W.
Montreal, Quebec H3G 1M8
Canada

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