Private equity minority investments have become an increasingly
attractive financing alternative for family firms. However, admitting a
private equity investor as a minority shareholder seems to contradict
with the objective of the owner family to preserve their continuous and
unlimited influence on the businesses since they must at least partially
cede control over the firm to the private equity investor. Therefore,
the purpose of this book is to identify the primary decision drivers for
family firm entrepreneurs in seeking private equity financing despite
the therein related partial loss of control. By giving special
consideration to the potential cooperation mechanisms between the
shareholders, this book goes beyond the scope of previous studies.
Cooperation is thereby considered as a prerequisite for the success of
minority investments because due to its minority position, the private
equity investor is not able to implement its value creation strategy
against the will of the family firm entrepreneur.