143 research outputs found
Why do European Venture Capital Companies syndicate?
Financial theory, resource-based theory and access to deal flow are used to explain syndication practices among European venture capital (VC) firms. The desire to share risk and increase portfolio diversification is a more important motive for syndication than the desire to access additional intangible resources or deal flow. Access to resources is, however, more important for non-lead than for lead investors. When resource-based motives are more important, the propensity to syndicate increases. Syndication intensity is higher for young VC firms and for VC firms, specialised in a specific investment stage. Finally, syndication strategies are similar across European countries, but differ from North American strategies.
The planned decision to transfer an entrepreneurial company.
The Theory of Planned Behavior (TPB) is used in this paper to empirically study whether an entrepreneur successfully transfers his/her firm, conditional on exiting the firm. TPB posits that entrepreneurial intentions drive actions, being the transfer of a business. We expand the TPB framework with business characteristics (intangible assets and profitability) to further explain the gap between intentions to transfer and the transfer outcome. Based on survey responses of 198 Belgian entrepreneurs that exited their company between 2001 and 2006, we show that intentions drive transfer outcomes. Further, the personal desirability of a transfer, the perceived control over the transfer process and the level of intangible assets influence intentions. Business profitability has a direct positive effect on the probability of transferring a business, that is partially mediated through intentions.
Entrepreneurial Buyout Monitor. A clear view on investment results 2013 - outlook 2014
Welcome to the first edition of the
Entrepreneurial Buyout Monitor –
a snapshot of the trends and challenges
involved in management buyouts
and buy-ins of SMEs in Belgium from
a practitioner’s perspective.
We captured the opinion of 175 buyout
experts in Belgium – including bankers,
private equity players, lawyers, brokers
and M&A advisers.
There has been a general lack of
understanding and transparency of the
smaller segment of the buyout market.
Here, we give insights and trends on
the general investment climate for
SME buyouts, including:
1) Deal flow
2) Deal-making
3) Financing
Overall, the results indicate the investment
climate has generally improved and this
is expected to continue in 2014. The key
insights from the survey are:
1) Deal flow is increasing – but with greater
levels of competition and a lack of
professionally run SMEs with the potential
to be transferred, sourcing high-quality
deals remains challenging
2) Lending conditions continue to be
challenging – putting pressure on
investment returns and urging investors to
look for alternative deal structures
3) Investors have to be more proactive –
focusing on targets with the potential
to add value through cutting costs or
pursuing growth opportunities
4) Potential vendors need to be realistic –
and either adjust their price expectations
or wait for improved operating results and
an uplift in multiples when the economic
climate improvesBD
Why start from scratch when you buy your own company? 10 frequent mistakes when buying a small business
Rather than start a new company from scratch, entrepreneurs often choose to buy a small business instead. But many people underestimate how complex and time consuming this process can be. Our white paper sets out ten frequent mistakes people make when buying a small business
Entrepreneurial Buyout Monitor. A clear view on investment results 2014 - outlook 2015
Welcome to the second edition of
the Entrepreneurial Buyout Monitor –
a snapshot of the trends and challenges
involved in management buyouts and
buy-ins of SMEs in Belgium from a
practitioner’s perspective.
We captured the opinions of 169 buyout
experts in Belgium – including bankers,
private equity investors, mezzanine players,
family offices, lawyers, brokers and M&A
advisers.
Overall, the results indicate the investment
climate has considerably improved –
as expected from last year’s edition.
The outlook for 2015 remains positive.
The key insights from the survey are:
1) DEAL FLOW IS INCREASING – however,
with higher levels of competition and
more favourable lending conditions, we’ve
also seen higher multiples – especially for
medium sized and larger deals. It’s tougher
to achieve attractive returns, so the deal
origination process is critical.
2) MORE FAVOURABLE DEBT MARKETS – overall
debt multiples increased and the cost of
lending significantly dropped. This was true
for medium sized and larger deals. However,
lending conditions continue to be challenging
for smaller deals – so they may need more
creative deal structures.
3) ALTERNATIVE INVESTORS BECOME MORE
PROMINENT – both family offices and
mezzanine investors become more active in
smaller MBO/MBI transactions.
4) PRIVATE EQUITY INVESTORS NEED A CLEAR
STRATEGY – they need a more focussed
approach to finding opportunities for growth
while cutting costs. And so they must gain a
deeper understanding – and further insights
into the sectors they’re targeting.BD
The planned decision to transfer an entrepreneurial company
We expand and test Ajzen’s Theory of Planned Behavior (TPB) to explain the transfer of an entrepreneurial venture upon exit. Our results confirm TPB: transfer intentions and perceived control over the transfer are the main drivers of the likelihood to transfer. In addition, contextual business characteristics complement TPB in explaining transfer outcomes. While intangibility of firm assets directly impacts transfer outcomes, business viability is partially mediated via transfer intentions. These results shed more light on the role of implicit planning in transfer decisions and help to better understand contextual factors impacting the process of entrepreneurial exits
Governance implications of attracting external equity investors in private family firms
While research has commonly assumed that business-owning families are concerned about the preservation of control, families are increasingly seeking cooperation with external investors to accomplish firm- or family-level goals. In this paper, we provide a conceptual configuration of the different governance scenarios that may arise when family owners attract outside capital. Combining two important family objectives-(a) to provide liquidity either to the family or to the firm, and (b) to cede or to retain long-term family control-we identify four scenarios with different governance implications and preferred types of external investors. Our analysis increases understanding of the evolving structures of ownership in private family firms, the effectiveness and efficiency of governance arrangements in family firm-external investor cooperation, and the increasingly heterogeneous private equity funding landscape
- …