Is it All About Money? – Affective Commitment and the Difference between Family and Non‐Family Sellers in Buyouts

In this paper we investigate private equity firm perceptions of sellers' affective deal commitment in buyout transactions. Using a sample of 174 buyouts, we test trust, goal congruence and private equity reputation as potential antecedents of perceived deal commitment. We also examine whether and how different types of sellers, family versus non-family firms, moderate sources of perceived affective deal commitment. In sum, we find evidence that non-financial factors play a role in buyouts, particularly for family firm sellers.