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Stepping into the buyer’s shoes: Looking at the value of family firms through the eyes of private equity

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Part of the book series: Familienunternehmen und KMU ((KMU))

Abstract

The quote "Nowadays people know the price of everything and the value of nothing" is attributed to Oscar Wilde. It could have well been spoken by family firm owners who sell their business to private equity (PE) investors. While it is relatively easy to put a price tag on products or services, it creates much more difficulty to do so when pricing a family business. Valuation techniques are used for expressing economic value of the family firm in monetary terms, i.e. establishing a basis for price negotiations (Granata & Chirico, 2010).

This chapter is based on Ahlers, O., Hack, A., & Kellermanns, F. W. (2012). “Stepping into the buyers’ shoes”: looking at the value of family firms through the eyes of private equity investors. Unpublished Working paper.

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Correspondence to Oliver Ahlers .

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© 2014 Springer Fachmedien Wiesbaden

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Ahlers, O. (2014). Stepping into the buyer’s shoes: Looking at the value of family firms through the eyes of private equity. In: Family Firms and Private Equity. Familienunternehmen und KMU. Springer Gabler, Wiesbaden. https://doi.org/10.1007/978-3-658-04094-9_3

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