The investment and participation behaviour of family businesses with a focus on private equity investments and mergers & acquisitions (M&A)

The changed economic conditions in Austria and the low level of interest rates are having an increasing impact on the investment behaviour of companies. Business with alternative investment opportunities was already flourishing before the global economic and financial crisis, but since the economic situation in Austria has stabilised again, alternative investments such as private equity and mergers & acquisitions (M&A) are once again on the rise.

In such transactions, family businesses (FU) in particular often consult their "trusted advisor". As already known from other studies, these are primarily tax advisors/auditors, commercial lawyers and notaries.

The aim of this qualitative study was therefore to analyse the investment and participation behaviour of private equity firms with an annual turnover of more than €5 million in both the private equity and mergers & acquisitions sectors. However, the investment behaviour of wealthy private individuals (in particular family entrepreneurs) was also to be surveyed with regard to private equity investments and mergers & acquisitions.

The content of this study included the following questions:

• What experience do family businesses have with private equity investments?
• What are typical family businesses (segments) that show interest in this form of investment?
• What motivations do family businesses/family entrepreneurs have for private equity investments and/or M&A?
• What goals do family businesses pursue with private equity investments or M&A?
• What are the opportunities and risks for family businesses/family entrepreneurs in the course of private equity investments and/or M&A?
• What are the advantages and disadvantages of private equity investments and/or M&A for family businesses/family entrepreneurs?
• What are the criteria for selecting companies (screening) in which family businesses invest?
• Which Styrian bank is the competence leader from the respondents' point of view and why?

Tax advisors, lawyers, notaries and auditors with experience in private equity and M&A transactions of family businesses are used as respondents in this qualitative survey.