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After the exit: Acquisitions, entrepreneurial recycling and regional economic development

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  • Colin Mason
  • Richard Harrison
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    Abstract

    MASON C. M. and HARRISON R. T. (2006) After the exit: acquisitions, entrepreneurial recycling and regional economic development, Regional Studies 40, 55-73. Most studies of the impact of mergers and acquisitions suggest they have a detrimental impact on economic development in peripheral regions over the longer-term. However, such assessments fail to consider the post-acquisition behaviour of the cashed-out entrepreneurs. It is argued here that acquisition triggers a process of 'entrepreneurial recycling' in which the entrepreneurs use their newly acquired wealth, allied to the experience they have accumulated, to engage in other entrepreneurial activities, notably starting new business ventures and investing in other businesses as business angels or venture capitalists. Case studies of five Scottish technology-based firms that were acquired by non-UK companies illustrate this process. When entrepreneurial recycling is taken into account, the overall impact of acquisition on regional economic development may be considerably more positive than the literature has suggested. Moreover, at a time when 'rustbelt' regions, such as Scotland, are becoming less competitive as locations for foreign direct investment, the acquisition of locally owned knowledge-based companies remains a way in which they can continue to attract such investment. The paper concludes with a research agenda for future studies of the 'harvest event'. Acquisition; Serial entrepreneurs; Business angels; foreign direct investment (FDI); Clusters; Regional development MASON C. M. et HARRISON R. T. (2006) Au-dela de la sortie: les acquisitions, le recyclage entrepreneurial et le developpement economique regional, Regional Studies 40, 55-73. La plupart des etudes sur l'impact des fusions et des acquisitions laissent supposer que les retombees sur le developpement economique a long terme des regions situees a la peripherie s'averent nuisibles. Toujours est-il que de telles evaluations ne tiennent pas compte du comportement des entrepreneurs a court d'argent au-dela de l'acquisition. On affirme que l'acquisition donne le feu vert au processus du 'recyclage enterpreneurial' ou les entrepreneurs se servent de leurs nouvelles richesses, conjointement avec le savoir-faire accumule, afin de s'engager dans d'autres activites entrepreneuriales, notamment la creation d'entreprise et l'investissement dans d'autres nouvelles entreprises en tant que business angels ou par voie du capital-risque. Ce processus est illustre a partir des etudes de cas de cinq entreprises ecossaises a la pointe de la technologie qui ont ete acquises par des societes situees en dehors du Royaume-Uni. Quand on tient compte du recyclage entrepreneurial, l'impact global de l'acquisition sur le developpement economique regional pourrait s'averer beaucoup plus positif que n'a laisse supposer la documentation. Qui plus est, au moment ou les regions 'en perte de vitesse', telle l'Ecosse, deviennent de moins en moins competitives comme emplacements pour l'investisement direct etranger, l'acquisition de societes autochtones a forte intensite de connaissance reste un moyen par lequel elles peuvent continuer a attirer de tels investissements. Pour conclure, l'article presente un programme de recherches pour les etudes futures de la 'fete de la moisson'. Acquisitions; Entrepreneurs en serie; Business angels; Investisement direct etranger (IDE); Regroupements; Amenagement du territoire MASON C. M. und HARRISON R. T. (2006) Nach den Ausstieg: Erwerb, unternehmerisches Recycling und regionalwirtschaftliche Entwicklung, Regional Studies 40, 55-73. Die meisten Untersuchungen der Auswirkung von Fusionen und Erwerb legen nahe, dass sie, auf langere Sicht gesehen, in Randgebieten eine nachteilige Auswirkung auf die wirtschaftliche Entwicklung ausuben. Derartige Beurteilungen ziehen jedoch nicht das nach dem Erwerb zu beobachtende Verhalten der 'ausbezahlten' Unternehmer in Betracht. Hier wird der Standpunkt vertreten, dass Ubernahme einen Vorgang des 'unternehmerischen Recycling' ins Rollen bringt, in dem Unternehmer ihre neu erworbenen Mittel dazu benutzen, in Verbindung mit den Erfahrungen, die sie gesammelt haben, sich anderweitig zu betatigen, vorallem in neuen Geschaftsunternehmen und durch Investierungen in anderen Geschaften in Form von Betriebsrettungen oder als Risikokapitalgeber. Fallstudien funf schottischer technologisch gestutzter Firmen, die von nicht im UK ansassigen Firmen ubernommen wurden, erlautern diesen Vorgang. Wo unternehmerisches Recycling in Betracht bezogen wird, darf die Gesamtauswirkung der Ubernahme auf regionalwirtschaftliche Entwicklung betrachtlich gunstiger ausfallen als die Literatur bisher zu verstehen gegeben hat. Zu einem Zeitpunkt, wo die Fahigkeit der 'Rustbelt' Regionen wie Schottland als Standorte fur Direktinvestierungen aus dem Ausland nachlasst, konnte der Erwerb auf Kenntnissen aufbauender, im Ortsbesitz befindlicher Gesellschaften daruberhinaus ein Weg bleiben, der ihnen gestattet, weiterhin dergleichen Investierungen zu anzuziehen. Der Aufsatz schliesst mit einem Forschungsprogramm fur kunftige Studien des 'Erntefalls'. Erwerb; Serienunternehmer; Geschaftsrettungen; FDI; Kluster; Regionale Enwicklung MASON C. M. y HARRISON R. T. (2006) Despues de la salida: adquisiciones, reciclaje empresarial y desarrollo economico regional, Regional Studies 40, 55-73. La mayoria de estudios sobre el impacto que tienen las fusiones y adquisiciones de empresas indican que existe a largo plazo un efecto perjudicial para el desarrollo economico en regiones perifericas. Sin embargo, en estas valoraciones se olvida analizar cual es el comportamiento de los antiguos empresarios remunerados despues de la adquisicion. Sostenemos que la adquisicion desata un proceso de 'reciclaje empresarial' en el que los empresarios hacen uso de su riqueza recien adquirida, que combinan con la experiencia que han acumulado, para participar en otras actividades comerciales, sobre todo comenzar nuevas empresas comerciales e invertir en otros negocios en forma de 'Angeles Inversores' (business angels) o inversionistas de capital de riesgo. Este proceso queda bien ilustrado con el ejemplo de cinco empresas de tecnologia ubicadas en Escocia que fueron adquiridas por companias no britanicas. Si se tiene en cuenta el reciclaje empresarial, el impacto general de la adquisicion en el desarrollo economico regional podria ser bastante mas positivo de lo que indican las publicaciones especializadas. Ademas, en un momento en que las regiones desindustrializadas, como Escocia, son cada vez menos competitivas como zonas para inversion directa extranjera, la adquisicion de empresas con conocimientos locales sigue siendo el metodo para atraer este tipo de inversiones. El documento concluye con un programa de investigacion para futuros estudios sobre 'casos de cosecha'. Adquisicion; Empresarios en serie; Angeles Inversores; Inversion directa extranjera (IDE); Grupos; Desarrollo regional

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Regional Studies.

    Volume (Year): 40 (2006)
    Issue (Month): 1 ()
    Pages: 55-73

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    Handle: RePEc:taf:regstd:v:40:y:2006:i:1:p:55-73

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    Cited by:
    1. Wennberg, Karl & Wiklund, Johan & Hellerstedt, Karin & Nordqvist, Mattias, 2011. "Implications of Intra-Family and External Ownership Transfer Of Family Firms: Short Term and Long Term Performance," Ratio Working Papers 172, The Ratio Institute.
    2. DeTienne, Dawn R., 2010. "Entrepreneurial exit as a critical component of the entrepreneurial process: Theoretical development," Journal of Business Venturing, Elsevier, vol. 25(2), pages 203-215, March.
    3. Dawn DeTienne & Melissa Cardon, 2012. "Impact of founder experience on exit intentions," Small Business Economics, Springer, vol. 38(4), pages 351-374, May.
    4. Karl Wennberg & Karin Hellerstedt, 2011. "Evolution of knowledge intensive firms: a sociogeographic demand side perspective," ERSA conference papers ersa10p1585, European Regional Science Association.

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