Advertisement
Published in:
2014 | OriginalPaper | Chapter
Stepping into the buyer’s shoes: Looking at the value of family firms through the eyes of private equity
Author : Oliver Ahlers
Published in: Family Firms and Private Equity
Publisher: Springer Fachmedien Wiesbaden
Activate our intelligent search to find suitable subject content or patents.
Select sections of text to find matching patents with Artificial Intelligence. powered by
Select sections of text to find additional relevant content using AI-assisted search. powered by
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).