Entrepreneurial Exit and Value Creation Articles published by Dr. Kipp A. Krukowski, ASA, CVA

Value Creation Strategies for Improving Company Infrastructure in Advance of Selling a Business (Krukowski, Kipp A.), The Value Examiner, November/December 2024 issue.

Summary: The study in The Value Examiner (Nov/Dec 2024) explores how various acquirers assess a company's core attributes, particularly its business infrastructure, which includes key activities, resources, and partnerships. By analyzing responses from 50 experienced business intermediaries and exit advisors, the research identifies strategies for strengthening business model infrastructure to enhance firm value and improve the likelihood of a successful business sale.


Examining the Business Model: Value Creation Strategies for Improving Financial Viability Before Selling (Krukowski, Kipp A.), The Value Examiner, September/October 2024 issue.

Summary: This article in The Value Examiner (Sept/Oct 2024) issue highlights that only 10% of businesses listed for sale actually sell, often due to a lack of advance planning. Through a qualitative study of business advisors and dealmakers, the article provides a roadmap for identifying value creation opportunities—focusing on financial viability, cost structure, and revenue streams—to help business owners enhance their company’s appeal and maximize sale proceeds.


Business Advisor and Dealmaker Testimonies: Deficiencies in privately-held small businesses leading to failed M&A transactions (Krukowski, Kipp A.), The Value Examiner, July/August 2024 issue.

Summary: This article in The Value Examiner (July/Aug 2024) issue examines the complexities of the business exit process and the factors that contribute to unsuccessful ownership transfers. Through a qualitative study of 50 seasoned business intermediaries and exit advisors, the article identifies five key deficiencies—financial, management, operational, customer-related, and lack of owner knowledge about the selling process—that often prevent privately held businesses from selling successfully.


From liability to asset: A receiver’s perspective on eponymy signals and market value (Arteaga-Fonseca, J., Phillips, D., Rutherford, M., & Krukowski, K.), Journal of Small Business Management, 2024.

Summary: This study explores how eponymy (naming a business after its founder) impacts a venture’s market value at exit, with firm age playing a key role. Analyzing 471 acquired private firms, the research finds that while eponymy initially decreases firm value, it becomes an asset after a threshold age of 44, ultimately enhancing valuation.


Why are you selling your business? Understanding signaling effects of seller rationale at time of entrepreneurial exit (Krukowski, Kipp A., Flink, N, & Edwards, B. D.), Journal of Business Venturing Insights, 2023.

Summary: This study examines how an entrepreneur’s stated reason for selling a privately held business influences potential acquirers’ perceptions and the final acquisition price. Using archival data, an experiment, and a qualitative study, the research finds that the communicated exit purpose impacts buyer interest and valuation, concluding with strategies for entrepreneurs on effectively disclosing their reason for exit.


Selling a business after the pandemic? Crisis and information asymmetry impact on deal terms (Krukowski, Kipp A. & DeTienne, Dawn R.), Business Horizons, 2022.

Summary: The study examines the impact of crises, such as COVID-19 and the 2007–2009 financial crisis, on small business exits, particularly how increased information asymmetry limits selling options. Analyzing 1,909 exit transactions, it finds that sellers who include seller financing as part of the deal often accept lower prices and less favorable terms in the short term, but waiting longer post-crisis improves deal outcomes. The research also offers strategies for reducing information asymmetry to enhance deal terms for small business owners.


A Call for Industry Specialization: An Academic Perspective on the Importance of Qualitative Research (Krukowski, Kipp A. & White, Jr., Lawrence J. 2021), The Value Examiner, May/June 2021 issue.

Summary: This article in The Value Examiner (May/June 2021) issue emphasizes the benefits of specialization in business valuation, as industry specialists can ask more insightful questions and better assess value impacts.


Letters to the editor. RE: A Call for Industry Specialization: An Academic Perspective on the Importance of Qualitative Research (Krukowski, Kipp A. & White, Jr., Lawrence J. 2021), The Value Examiner, July/August 2021 issue.

Summary: This is a response to a letter to the editor and provides further insight on why industry specialization is important, using an example from the automotive manufacturing industry.


Winning the opportunity to pitch: Piquing startup investors’ interest by sending the right signals in executive summaries (Krukowski, Kipp A., Pollack, Jeffrey M., & Rutherford, Matthew W.), Business Horizons, 2022.

Summary: This study examines how entrepreneurs can optimize their one-page executive summaries to increase their chances of securing investor interest. Through an experiment and follow-up study, it finds that emphasizing human capital in executive summaries significantly improves investor perception and opportunity recognition, making it more influential than social, intellectual, or financial capital in the early investment evaluation process.


Human Capital Across the Life Cycle of Entrepreneurial Ventures (Krukowski, Kipp A., Rutherford, Matthew W., & Pollack, Jeffrey M.), Frontiers of Entrepreneurship Research, 2021.

Summary: This research examines the role of human capital across the life cycle of entrepreneurial ventures through three studies. It finds that human capital signals strongly influence early-stage investor decisions, productivity increases as firms mature, and firms that reduce their reliance on human capital at exit are perceived as lower risk, highlighting the dynamic nature of human capital in business growth and transitions.