Measures of value in acquisitions: family versus nonfamily firms

Darya Granata*, Francesco Chirico

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

36 Citations (Scopus)


This article sheds light on the valuation of family firms when compared with nonfamily firms as acquisition targets. The authors argue that although the majority of theoretical and empirical research explicitly recognizes the prevalence and superior performance of family firms around the world, acquiring companies tend to regard family firms as unprofessional and inefficient organizations, thus negatively affecting their valuation when compared with nonfamily firm targets. Overall, the authors' empirical analysis, based on a matched-pairs methodology and use of multiples, shows that acquiring companies favor the stagnation perspective rather than the stewardship perspective and thus pay less (i.e., acquire at a discount) for a family firm target than for a nonfamily firm target.

Original languageEnglish
Pages (from-to)341-354
Number of pages14
JournalFamily Business Review
Issue number4
Publication statusPublished - 1 Dec 2010
Externally publishedYes


  • acquirers' perception
  • acquisition
  • EBIT and EBITDA multiples
  • family firms' valuation
  • matched-pairs methodology


Dive into the research topics of 'Measures of value in acquisitions: family versus nonfamily firms'. Together they form a unique fingerprint.

Cite this