ABSTRACT
Demographic forces in the U.S. economy can be expected to have a significant impact on the behavior of small business owners, particularly as it relates to their ownership transitions and exiting from their privately held firms (the development of “harvest” strategies). The ability of business owners to identify entity value and communicate this to the market (market signaling) could be a key determinant in maximizing sellers’ payouts at the dispositions of their businesses. Historically, payouts have been maximized through transactions with strategic buyers, who have pre-existing knowledge of the seller’s industry or market thereby permitting rapid value accretion for buyers. However, a current unprecedented level of capital available in the private equity market has created a sea of financial buyers who, despite having available capital, may not have the industry or firm specific knowledge which permits the rapid value accretion in an acquisition as it would a strategic buyer. In turn, seller payouts may be suppressed because of selling to financial buyers. The primary focus of this paper is to explore how sellers view the differences between the two types of buyers and the implications for seller payouts. More broadly, it addresses the importance of market signaling and its impact on seller payouts. / Business Administration/Entrepreneurship
| Identifer | oai:union.ndltd.org:TEMPLE/oai:scholarshare.temple.edu:20.500.12613/4731 |
| Date | January 2020 |
| Creators | Webb, Edward, 0000-0001-6430-2241 |
| Contributors | Schmidt, Stuart M., Naveen, Lalitha, Andersson, Lynne Mary, Grace, Elizabeth |
| Publisher | Temple University. Libraries |
| Source Sets | Temple University |
| Language | English |
| Detected Language | English |
| Type | Thesis/Dissertation, Text |
| Format | 99 pages |
| Rights | IN COPYRIGHT- This Rights Statement can be used for an Item that is in copyright. Using this statement implies that the organization making this Item available has determined that the Item is in copyright and either is the rights-holder, has obtained permission from the rights-holder(s) to make their Work(s) available, or makes the Item available under an exception or limitation to copyright (including Fair Use) that entitles it to make the Item available., http://rightsstatements.org/vocab/InC/1.0/ |
| Relation | http://dx.doi.org/10.34944/dspace/4713, Theses and Dissertations |
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