Beteiligungskapital und selektive Informationssuche in mittelständischen Unternehmen

A survey conducted by the Center for Entrepreneurial and Financial Studies (CEFS) at Technische Universität München in cooperation with the chamber of commerce (IHK) for Munich and Oberbayern showed that mid-sized businesses show great interest in private equity. However, nearly 60% of the 266 companies held the opinion that private equity funding can only be considered and employed under specific circumstances. Above all, what deters the majority of companies from private equity financing are high return expectations on the investor's side and the fear of losing decision power over one's own business. Comparisons between private-equity-backed and non-private-equity-backed companies provide some evidence on selection biases in information processing concerning private equity financing. In order to avoid such selection biases private equity firms should provide small and medium companies with more detailed and comprehensive information about private equity and stress the positive impact of private equity on the overall development of the business.