Opening the Black Box: Power in Buyout Negotiations and the Moderating Role of Private Equity Specialization

Ahlers, Oliver; Hack, Andreas; Kellermanns, Franz; Wright, Mike (2016). Opening the Black Box: Power in Buyout Negotiations and the Moderating Role of Private Equity Specialization. Journal of Small Business Management, 54(4), pp. 1171-1192. Wiley 10.1111/jsbm.12235

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The management buyout is an important exit strategy for small business owners. Negotiations of buyout deals have received little research attention to date. This is surprising given buyout negotiations’ complexity giving rise to multiple issues that require consideration and often conflicting interests of deal parties. This paper examines perceived bargaining power in buyout negotiations between private equity (PE) firms and current owners who sell their business. We identify competition, expertise, and time pre ssure as key antecedent s of PE firms’ perceived barga ining power and examine the moderating effect of PE firms’ industry and size specialization in buyout negotiations. We use a sample of 176 respondents who each report on a particular buyout deal for a PE firm. The majority of respondents are seasoned PE professiona ls who held managing director or investment director positions.

Item Type:

Journal Article (Original Article)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute for Accounting and Controlling > Financial Accounting
03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute of Organization and Human Resource Management > Human Resource Management

UniBE Contributor:

Hack, Andreas

Subjects:

600 Technology > 650 Management & public relations
300 Social sciences, sociology & anthropology > 330 Economics

ISSN:

0047-2778

Publisher:

Wiley

Language:

English

Submitter:

Claudia Probst

Date Deposited:

13 Jan 2017 14:13

Last Modified:

06 Apr 2017 16:02

Publisher DOI:

10.1111/jsbm.12235

BORIS DOI:

10.7892/boris.92051

URI:

https://boris.unibe.ch/id/eprint/92051

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