Abstract
External succession through the private equity route has recently become a more common option for family firms. Drawing on the socioemotional wealth (SEW) perspective, we study what factors influence the selling decision of family firm owners and managers and look at the moderating role of family firm portfolios. Based on a unique vignette study conducted with 200 vignette responses by family firm owners and managers, we unveil that levels of SEW and financial performance influence the propensity to sell. Surprisingly, the existence of family firm portfolios only significantly moderates the relationship between innovation performance and the propensity to sell. Our research provides important implications for research on family firm external succession and the SEW literature, contributing insights on the factors influencing decisions on the private equity succession route
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