New Venture Teams and Acquisition: Team Composition Matters

37 Pages Posted: 7 May 2019

See all articles by Leila Soleimani

Leila Soleimani

University of Scranton, Kania School of Management

Ryan Stauffer

Bucknell University - Freeman College of Management

Date Written: April 16, 2019

Abstract

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

Soleimani, Leila and Stauffer, Ryan, New Venture Teams and Acquisition: Team Composition Matters (April 16, 2019). Available at SSRN: https://ssrn.com/abstract=3372749 or http://dx.doi.org/10.2139/ssrn.3372749

Leila Soleimani (Contact Author)

University of Scranton, Kania School of Management ( email )

800 LINDEN ST
Scranton, PA 18510
United States

Ryan Stauffer

Bucknell University - Freeman College of Management ( email )

United States
5705771988 (Phone)

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