Sale: An alternative succession route for family firms

Granata, DaryaDarya Granata (born Krukouskaya) got her PhD in Economics from the University of Lugano, Switzerland. She spent the last year of her PhD at the Wharton School of the University of Pennsylvania on a scholarship from the Swiss National Science Foundation. Darya is a CFA charterholder and currently works as a Product Development Manager at STOXX.

Family firms form the majority of organizations around the world. However, only few survive beyond the first generation. Traditionally, intergenerational succession has been equated to the success. Within the family business literature succession is the most researched domain. However, very little has been said about alternatives to intergenerational transfer. The view that handing over the family firm to the children is the only way to go appears somewhat limited. Indeed, family business owners often use the term "pass along" to mean both transferring ownership to the next generation and selling the firm to pass along the wealth. In effect, some families want and can be passed on to multiple generations, while others may be unwilling or unable to do so. Empirical research suggested that some owners may perceive that there are no suitable family members to whom ownership and leadership can be transferred. Accordingly, for some business families an exit can be a positive choice. This book focuses on family firm sale, with a particular emphasis on valuation and acquirers' perception of family firm targets.