Family Firms versus Private Equity: A struggle of business models? The example of the German printing industry

摘要

With the growth of the Private Equity (PE) industry an increasing number of firms remain for substantial periods in the ownership of PE companies. Today, PE owned companies are important and permanent competitors for many traditional Family Firms. The financial and commercial strategies of both types of firms differ substantially. The paper analyses the differences in structure and strategy of PE-owned and Family-owned companies with a particular focus on the functioning of German Family owned Mittelstand firms. Using the German Printing Industry as a case study we try to assess 1) why PE backed firms are particularly dominant in shrinking industries, 2) in how far competition from PE owned companies reduces the viability of the stakeholder focused strategies that are the core of many family firms' success and 3) whether more widespread PE ownership will erode the institutional environment that has enabled the flourishing of the German Mittelstand.