Investigating Decision-Making Criteria of Private Equity Investors in Family Firms
Frontiers of Entrepreneurship Research 2006
12 Pages Posted: 17 Dec 2008 Last revised: 10 Mar 2009
Date Written: December 3, 2008
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.
JEL Classification: M13
Suggested Citation: Suggested Citation