Abstract
The purpose of this study is to clarify the determinant factors for corporate succession in small business. In order to achieve this goal, we focus on the components of the corporate value evaluation and try to find determinant factors from them.
In addition, we make a comparative study to find differentiation of succession status between companies which succeed their management to the family and to the third party.
Empirical results indicate that sales and profits, instead of corporate assets, is the key decision making factor for succession. Also we found a companies with debt, have no competitive advantage for future cash flow, have few employee and long term administration of CEO are more likely to succeed to the families in compare with the third parties.
