New Venture Teams and Acquisition: Team Composition Matters
37 Pages Posted: 7 May 2019
Date Written: April 16, 2019
This study examines the relationship between the composition of new venture founder teams and acquisition likelihood as a coveted exit route for entrepreneurs and investors. We find that gender diversity and the average education level of team members are positively related to acquisition likelihood. In addition, our results indicate a negative effect of industry experience level diversity on acquisition likelihood. This study provides insight into the significant role of founder characteristics in team-founded ventures as it relates to acquisition likelihood and the results may be of interest to both founders and external investors.
Keywords: new venture, teams, diversity, entrepreneurship, exit, mergers and acquisitions
JEL Classification: M13, M14, L26, G34
Suggested Citation: Suggested Citation