Torsten Wulf, Stephan Stubner, Robert Gietl, Christian Landau

• We extend family firm research by showing which resource deficiencies exist in family firms and what impact private equity iestors have with regard to these deficiencies. We use value-adding activities of private equity iestors as our main proxy, as they are only applied where shortcomings are expected. Building on the resource based view we develop a set of categories where private equity iestors try to support family firms. Our analysis of 118 family firms that were acquired by private equity iestors show that especially cooperationand networking seem to be neglected factors in family firms. Furthermore, low performers are shown to have deficiencies in structures and systems.Our main contribution to family firm research lies in the development of distinct categories alongside which resource deficiencies of family firms can be analyzed. As a large part of family firms eventually get sold to private equity iestors, we also add to research by providing a first linkage between family firm research to private equity research.