Selling, Passing on or Closing? Determinants of Entrepreneurial Intentions on Exit Modes

Abstract

Abstract:Exit is an important part of the entrepreneurial lifecycle. In contrast to numerous previous studies on entry, however, little attention has been paid to entrepreneurial exit, and much less on exit modes thus far. Using a recent original survey data on small business owners in New Zealand, where a large majority of them prefer selling their firms when they exit, we empirically investigate the determinants of intended entrepreneurial exit modes: selling out, succession, or closure. Estimation results of multinomial logit analysis suggest that the intention to sell the business is significantly affected by the size and performance of the firm, the involvement of family and how the owner entered the business. Moreover, we find that the intention to liquidate the business is significantly affected by the size and performance of the firm and partly by family involvement in the business.

‘I want this firm to be in good hands’: Emotional pricing of resigning entrepreneurs

“…As a sale of the firm is among the most common exit options (Battisti and Okamuro, 2010;Dehlen et al, 2014;Howorth et al, 2007), owner-managers' price expectations are particularly relevant (Granata and Chirico, 2010). The underlying assumption is that owner-managers' price expectations determine important 'exit outcomes' (Van Teeffelen and Uhlaner, 2013: 2), including the speed of the transaction process and the satisfaction of the parties involved.…”

La décision de sortie entrepreneuriale : un processus non linéaire et multiforme

“…Une recension réalisée par Shepherd, Williams et Patzelt (2014) soutient toutefois que l'étude de la DSE, comparativement aux autres types de décisions entrepreneuriales, est celle ayant reçu le moins d'attention en recherche. On constate également que les travaux sur la sortie entrepreneuriale se concentrent davantage sur la comparaison des stratégies de sortie utilisées par les entrepreneurs pour quitter leur entreprise (DeTienne et Cardon, 2005 ;Wennberg, 2009 ;Wennberg, Wiklund, DeTienne et Cardon, 2010 ;DeTienne et Wennberg, 2013), de même que sur les déterminants associés au choix de l'une ou l'autre de ces stratégies (DeTienne et Cardon, 2005 ;Battisti et Okamuro, 2010 ;Leroy, Manigart et Meuleman, 2010). On s'intéresse, par exemple, à comprendre pourquoi les propriétaires-dirigeants font le choix de vendre ou liquider plutôt que transmettre.…”

“…Dans les travaux qui s'intéressent aux facteurs individuels ayant un impact sur le choix de stratégie, le capital humain de l'individu est souvent mobilisé comme variable explicative. Ce dernier réfère notamment, au niveau de scolarité, à l'expérience entrepreneuriale et à l'âge (Battisti et Okamuro, 2010 ;DeTienne et Cardon, 2012 ;Van Teeffelen et Uhlaner, 2013 ;Wennberg et al, 2010). Un niveau de scolarité élevé prédirait par exemple l'intention d'un dirigeant de vendre son entreprise plutôt que de la transmettre à la famille (DeTienne et Cardon, 2012) ; une influence qui n'a cependant pas toujours été confirmée (Van Teeffelen et Uhlaner, 2013).…”

Management Control Systems in Small Business Transfers — A Resource-Based View

“…The estimated volume of business transfers around Europe offers great potential for both entrepreneurs to grow their existing businesses with an acquisitive strategy and also for entrepreneurs to start by buying a firm. According to recent surveys, approximately 15-35 % of SMEs will find a successor inside the family, but almost 40 % of firms are looking for external buyers (Battisti and Okamuro, 2010;CSES, 2013;Varamäki et al, 2014). All in all, business transfers are essential to the vitality and performance of national economies (e.g.…”

“…Lansberg, 1988;Le Breton-Miller et al, 2004;Morris et al, 1997). Interest in non-family transfers was triggered by the massive expected numbers of business transfers (European Commission, 2002) and the increasing empirical evidence that the proportion of family transfers in SMEs is decreasing (Battisti and Okamuro, 2010;Howorth et al, 2004;Varamäki et al, 2014). In this study, we refer to a broader definition of business transfers that includes both transfers with external buyers (coming from outside the family) and successions in family firms (successors come from within the family).…”