Private equity minority investments have become an increasingly attractive financing
alternative for family firms. However admitting a private equity investor as a minority
shareholder seems to contradict with the objective of the owner family to preserve their
continuous and unlimited influence on the businesses since they must at least partially cede
control over the firm to the private equity investor. Therefore the purpose of this book is to
identify the primary decision drivers for family firm entrepreneurs in seeking private equity
financing despite the therein related partial loss of control. By giving special consideration
to the potential cooperation mechanisms between the shareholders this book goes beyond the
scope of previous studies. Cooperation is thereby considered as a prerequisite for the success
of minority investments because due to its minority position the private equity investor is
not able to implement its value creation strategy against the will of the family firm
entrepreneur.
