This chapter examines changes in financial practices after buy-outs in family businesses. In line with the chapters 5 and 6, the chapter starts with a comparison of financial practices in family businesses and portfolio companies in section 7.1, proceeds with derivation of expected changes in section 7.2 and continues with description and analysis of empirically observed changes in section 7.3. Section 7.4 summarizes the chapter. Analysis of financial practices focuses on the following three aspects: financing, reporting to banks, and investment activity (see Figure 43).
KeywordsCapital Structure Family Business Supervisory Board Investment Activity Equity Ratio
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