Title: Acquisitions by family businesses in continental Europe and their differences compared to private equity investors
Authors: Philipp Schüler; Mark Mietzner; Dirk Schiereck
Addresses: Brunswick Group GmbH, Thurn-und-Taxis-Platz 6, 60313 Frankfurt, Germany ' Zeppelin Universität, Am Seemoser Horn 20, 88045 Friedrichshafen, Germany ' Technische Universität Darmstadt, Hochschulstr, 1, 64289 Darmstadt, Germany
Abstract: This study explores whether family business investors and private equity investors in continental Europe significantly differ from their investment approach and performance. Therefore, we analyse 126 acquisitions of listed Continental European firms by family business investors or private equity firms from the years 2002 to 2012. Although most of the performance differences between both investor groups are not statistically significant, the results fit with the existing evidence on shareholder activism of institutional investors like private equity funds and corporate raiders. However, there are some significant differences with respect to target firm characteristics. Consequently, we suggest to increasingly consider family business investors in the research on shareholder activism in Continental Europe.
Keywords: minority stake acquisition; shareholder activism; family business; private equity; PE; corporate governance; agency conflicts; Europe.
International Journal of Entrepreneurial Venturing, 2019 Vol.11 No.2, pp.142 - 163
Accepted: 14 Nov 2017
Published online: 15 Mar 2019 *