A well-planned and executed family succession represents an enormous opportunity for the further development of your company.
53% of companies looking for a successor by 2026 are likely to resolve their succession issue via an internal family succession. (see IfM Bonn 2021)
As entrepreneurs, managing directors and shareholders, the topic of company succession is an essential part of company management. At least 3-5 years should be planned for a holistic internal company succession. Starting too late or letting go too late are the primary reasons for failed handovers to the next generation. General experience shows that succession planning is underestimated by many entrepreneurs and companies and is addressed too late, which can result in considerable losses of assets for the owners and shareholders.
A handover process basically runs as follows:
- Analysis of the current situation
- Definition of objectives
- Clarity about the succession strategy to be pursued
- Legal and tax preparation
- Practical implementation
The complexity of the process is due to the fact that 4 different levels are involved in this process at the same time.
- Personal level
- Family level
- Owner or shareholder level
- Entrepreneurial level
Psychological aspects play one of the main roles. Transparency, participation of all those involved and joint decisions are key elements. This is achieved through constructive and open communication between all persons and family members involved. Only if all family members, including those not directly involved in the succession, are in favour of the succession can the handover to the next generation be successful. Conflicts should be uncovered, openly communicated and resolved. Unresolved conflicts can be an enormous disruptive factor for the sustainable continuation of the business. Drawing up a family constitution can be a valuable tool here.
THE MAK’ED TEAM supports and accompanies your company throughout the entire succession process.
Succession is also an enormous opportunity for the further development of your company. In order to identify a suitable successor, it is advisable – especially in the case of family businesses – to take a professional view from the outside in order to objectively assess suitability and potential for successful future company management. The three aspects of leadership skills, business management expertise and entrepreneurial thinking and behaviour are of particular importance here.
To ensure the long-term success of the company, it is important to consider the family and company systems separately. In the family, equal treatment and security take centre stage, while in the company it is all about performance and suitability. It is not always easy for the people involved to separate the two systems and make the best decision for the company.
Link zu: The Challenge of Company Succession: Successful Generational Change in SMEs
The Challenge of Company Succession: Successful Generational Change in SMEs
According to a recent study by KfW Research, around 560,000 companies will be facing management and ownership succession by the end of 2026. However, a third of these companies are planning to leave the market without a successor. And this high figure is not surprising. Succession has become a major challenge in many medium-sized companies.
Lesen →
Link zu: Promoting Progress: State Support for SMEs
Promoting Progress: State Support for SMEs
Public funding supports small and medium-sized enterprises in their development. But which funding programmes are suitable for your own company? And how can the right funding be identified, or several funding programmes be combined? Entrepreneurs who deal with this topic quickly realise that getting an overview and making the right choice for their own company […]
Link zu: Succession in Family Businesses – Practical Experience
Succession in Family Businesses – Practical Experience
Handing over one’s own business is a challenging topic. Many entrepreneurs find succession difficult. Even if, like one of our clients, they deal with it at an early stage: Frank S., a medium-sized entrepreneur in his early sixties, had started to deal with the issue of succession in his mid-50s. So, he was well on […]
Link zu: Sound and Realistic Determination: Company Valuation in medium-sized Companies
Sound and Realistic Determination: Company Valuation in medium-sized Companies
The planning of a company succession, the sale of the company or the departure of a shareholder: The company valuation can become relevant for very different reasons. Basically, the company value is an important criterion when a company is up for succession. The company value provides important guidance at all stages of the succession process: […]
