Thursday, July 18, 2013

Private Equity and Family Businesses - Making the Partnership Work

ZEISBERGER Claudia, PRAHL Michael, WEE Jean
Read the working paper
INSEAD Working Paper 2013/81/DS/EFE

Fast growing Family Businesses have many choices when considering the sources of funding to expand their business. The article discusses a systematic approach to exploring a potential partnership between Growth Equity Investors and Family Owned Businesses. It describes under which circumstances Growth Equity can significantly contribute to the development of the family firm and contemplates the main issues to consider before entering into such a long term partnership. As such it acts as a valuable checklist for entrepreneurs and business owners to make better informed decisions when selecting a Growth equity or Private Equity investor to facilitate future growth.