Figure I - uploaded by Richard A Hunt
Content may be subject to copyright.
ETA within the U.S. Acquisition Landscape 

ETA within the U.S. Acquisition Landscape 

Source publication
Article
Full-text available
This paper presents a long overdue reassessment of entrepreneurship through acquisition (ETA). Traditionally considered simply a niche occurrence of small company leveraged buyouts (LBO), ETA is actually a meaningful contributor to a nation’s entrepreneurial capacity and business revitalization. Scholarly understanding of ETA has been severely limi...

Similar publications

Chapter
Full-text available
Das Vorgehensmodell oder Prozeßmodell für das Software Reengineering beschreibt auf abstrakte Weise die Aktivitäten, die zur Wiederverwendung von Altsystemen zwecks Erzeugung eines neuen Software-Systems nötig sind. Auf der Basis umfangreicher Praxiserfahrungen werden die notwendigen Schritte und ihre Reihenfolge erläutert und ebenso Problembereich...
Conference Paper
Full-text available
The paper suggests a framework for achieving alignment between a process and its external and internal environment. The framework consists of two components. The first component concerns alignment between the process and its external environment - business environment in which the process functions or is to function. The second component concerns a...
Article
Full-text available
This study investigates the impacts of information technology on business process reengineering from intra- and extra-organizational perspectives. This research proposes a framework for facilitating business process reengineering efforts towards competitive organizations. The framework was tested using data from a sample of 382 chief information of...

Citations

... When looking at the risk profile of SF as an asset class compared to other private market investment options, SF provide a higher aggregated internal rate of return and less survival, exit and liquidity risks (Fund & Hunt, 2012). In comparison to start-up companies backed by angel investments or venture capital, which display a 35% survival rate, search funds' survival rates range at a 90% level (Fund & Hunt, 2012). ...
... When looking at the risk profile of SF as an asset class compared to other private market investment options, SF provide a higher aggregated internal rate of return and less survival, exit and liquidity risks (Fund & Hunt, 2012). In comparison to start-up companies backed by angel investments or venture capital, which display a 35% survival rate, search funds' survival rates range at a 90% level (Fund & Hunt, 2012). Private equity buyout firms operate similarly to SF, but traditionally acquire target companies with Jockey = the search funds entrepreneur becoming CEO of their own business Horse = the target company finding a successor and creating value Trainer = the investor and searchers' mentor making gains on lowrisk investment opportunities | 85 a higher EBITDA, as SF in the US focus on targets with EBITDA below five mln USD (Johnson, 2014). ...
... Overall, for investors, SF are a less risky investment opportunity within the private markets than traditional private equity, angel investing or venture capital. Furthermore, in this comparison, SF have realized higher returns of investment and higher internal rates of return (Kelly & Heston, 2020;Fund & Hunt, 2012;Global Private Equity Report, 2020). report that the median international SF acquisition ranges at a purchase price of 11 mln USD, providing a revenue of eight mln USD with an EBITDA margin of 23% and acquired at a purchase price to EBITDA multiple of 5.6 times with a purchase price to sales multiple of 1.3x (Kelly & Heston, 2020, for US and Canadian key figures). ...
... Our sample consists of buyout entrepreneurs, which are individuals who are looking to become an entrepreneur by acquiring an existing venture, typically a small business (Wright et al. 2001a(Wright et al. , 2001b. Buyout entrepreneurs are entrepreneurially motivated in the sense that their goal is to grow and enhance the business they acquire (Hunt and Fund 2012). They typically invest a large portion of their personal wealth in the venture they acquire and engage in the processes of discovery, evaluation, and exploitation of opportunities (Hunt and Fund 2012). ...
... Buyout entrepreneurs are entrepreneurially motivated in the sense that their goal is to grow and enhance the business they acquire (Hunt and Fund 2012). They typically invest a large portion of their personal wealth in the venture they acquire and engage in the processes of discovery, evaluation, and exploitation of opportunities (Hunt and Fund 2012). Therefore, they show important common threads to nascent entrepreneurs (Shane and Venkataraman 2000). ...
... This context of buyout entrepreneurs is highly relevant to study the control-value creation tradeoff since it mitigates the uncertainty about, and the volatility of the control decisions faced by nascent entrepreneurs in a venture creation context. However, buyout entrepreneurs are usually hard to identify (Hunt and Fund 2012), which means that they have largely been ignored in prior research (Meuleman et al. 2009;Alemany and Andreoli 2018). Yet, we surveyed 868 (aspiring) buyout entrepreneurs, who were identified through their participation in executive education programs at two European business schools targeted at individuals seeking to acquire their own venture in the near future. ...
Full-text available
Article
In order to obtain a better understanding why some entrepreneurs retain more control over their venture than others, this article analyzes the relationship between the social identity of the entrepreneur and her/his desire for control. In fact, entrepreneurs face an important tradeoff between attracting resources required to build company value and retaining decision-making control. Yet, we currently lack insight into whether and how entrepreneurs’ social motivations shape this trade-off. This study draws on social identity theory and a unique sample of 148 buyout entrepreneurs, as this setting confronts aspiring entrepreneurs directly with the value–control tradeoff. In our logistic regression, we find that entrepreneurs with a strong missionary identity, where venture creation revolves around advancing a cause, hold a higher desire for control. We do not observe a significant relationship between entrepreneurs having a Darwinian (driven by economic self-interest) or communitarian (driven by the concern for the community) identity and the desire to control their venture. When adding the moderating role of the portion of personal wealth the entrepreneur is willing to invest in her/his venture, the relationships between having a Darwinian or missionary social identity and the desire for control become significantly positive when the entrepreneur is looking to invest a larger portion of her/his wealth.
... The investigation of EO's role in determining acquisition-related outcomes positions the study at the confluence of two divergent forces. On the one hand, key strategic proclivities, Hunt & Fund, 2012). ...
... Corporate spin-ins occur when a firm acquires a company that was founded by a former employee. Often, the innovations of ex-employees are permanently lost to the parent-firms when frustrated or ambitious employees leave the parent to form their own companies (Klepper & Sleeper, 2005;Hunt, 2012Hunt, , 2015, a phenomenon called intra-industry entrepreneurial spinouts. Such spin-outs typically fail to facilitate corporate renewal since the parent company does not benefit from the innovations produced in the new organization (Agarwal, et al. 2004;. ...