Title: Family business: the role of target non-financial characteristics in M&A activities: an explanatory analysis of the Italian context

Authors: Anastasia Giakoumelou; Beatrice Sciarra; Felice Petruzzella

Addresses: Department of Management, Ca' Foscari University of Venice, Venice, 30123, Italy ' Italy ' Department of Business Sciences, Giustino Fortunato Telematic University, Benevento, 82100, Italy

Abstract: Family businesses are major contributors to the world's economy, but their actual contribution is difficult to evaluate due to a lack of consensus around the very definition of a family business. This study investigates whether non-financial family-related factors determine deal value in extraordinary financial operations that involve controlling stakes. The aim of this study is to bridge a gap in literature on the role of family-related non-financial factors in the M&A context when family firms are involved as target. Our findings highlight that the presence of the firm's founder among the selling shareholders and a higher stake of family shareholders retaining governance or management roles in the firm post-operation negatively affect the acquisition price. This study has important theoretical and managerial implications that can help academics and practitioners understand the deal value determinants in the M&A context.

Keywords: family business; target; non-financial characteristics; M&A; control.

DOI: 10.1504/IJBAF.2023.131651

International Journal of Behavioural Accounting and Finance, 2023 Vol.7 No.1, pp.86 - 111

Received: 14 Mar 2023
Accepted: 19 May 2023
Published online: 21 Jun 2023 *

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