ABSTRACT
Family firms tend to survive longer than firms under other models of ownership. Increasingly, management buyouts (MBOs) or buyins (MBIs) are providing a route for family owners to realize their assets. Family firms account for a significant percentage of all buyouts. The chapter explains the reasons for family business MBO/Is, examines the process for MBO/Is of family firms, with insights into variation in negotiation behaviors and implications for outcomes. It also examines the outcomes of family firm MBO/Is longitudinally, highlights that MBO/Is can trigger an increase in firms' professionalization. Howorth et al. emphasize that professionalization is not a once and for all threshold development stage, as had previously been suggested in the literature, but is a multi-faceted ongoing process. Howorth et al.'s longitudinal analysis showed that professionalization was likely to occur in waves, triggered by changes in ownership and management, and that MBO/Is were particularly important triggers.
