Exit strategy for a founder dependent company. How to overcome the challenges and maximize the value of the company.

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Journal Title

Journal ISSN

Volume Title

Perustieteiden korkeakoulu | Master's thesis

Authors

Date

2017-12-13

Department

Major/Subject

Strategy and Venturing

Mcode

SCI3050

Degree programme

Master’s Programme in Industrial Engineering and Management

Language

en

Pages

87+2

Series

Abstract

The objective of this research was to examine what are factors that drive the value in a young, small, founder dependent company and how can this be maximized in the projection of a potential exit of the founder. The research methodology followed the method of the case study as presented by Yin (2009), and was based on a single case study. Academic literature was used to build a base of information and a framework through which analyze the data collected through interviews in the case company. The company used for this case study is a Finnish SME, that imports and distributes food and beverage products in Finland. My findings suggest that understanding how resources are used, and what capabilities are developed in a young, small, founder-dependent company are crucial factors to understand its value, as they reveal if the company's can enjoy a competitive advantage over the other firms operating in the same market, and if this competitive advantage can be sustainable. They suggest that, even though the value of a founder-dependent company is inversely proportional to its degree of dependency on the founder, this dependence can be minimized in order to maximize the value of the company. The case company detains a good position in terms of resources and capabilities that guarantee it a sustained competitive advantage and, thus, a good value. However, it need to implement a number of steps in order to minimize its dependency over its founder, and consequently maximize its value.

Description

Supervisor

Schmidt, Jens

Thesis advisor

None, none

Keywords

resources, capabilities, competitive advantage, founder-dependency, strategic fit, value creation

Other note

Citation

Permanent link to this item

https://urn.fi/URN:NBN:fi:aalto-201712188229

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[dipl] Perustieteiden korkeakoulu / SCI