External Succession

Not every entrepreneurial family finds a successor from within their own ranks.

Then the question arises as to who should take responsibility for the company, its employees, and its ownership in the future.

Succession addresses two fundamental levels: ownership of the company and management of the company. Therefore, there is no single "external" succession model. In an external succession, individual or all roles are filled by people outside the owner family. This creates a multitude of possibilities for making the "right" decision.

Integrating ownership and leadershipIntegrating ownership and leadership

Generational change requires looking at two perspectives: the role as a shareholder and the role in company management. Only when both levels are considered can sustainable decisions be made. This is exactly what makes succession challenging. While the family is focused on cohesion and integration, company management follows clear principles of performance and accountability. That is why it is important to address succession early, consciously include both perspectives, and clarify the resulting questions together.

How can a succession plan be structured outside of the family?How can a succession plan be structured outside of the family?

If the company is to remain in family ownership without family members taking over management, external managers can fill this role. This is possible both with and without an equity stake in the company.

For shareholders and the owner family, selling the company is a sensible option if the shareholder position no longer aligns with the individuals' future plans or the company's situation. Transferring the company to non-family owners through a sales process realizes the company's value and creates room for other activities, whether in different industries or as a family office.

Succession is a strategic decision.

We know the succession options! – Let’s talk!

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Open-plan office with rows of desks, monitors, and office chairs

Shaping succession successfully

Routes to succession outside the family

Bringing in external management

External management takes responsibility for the operating business while the company stays in the family's ownership. For this to work it takes clear accountability, binding decision paths and trust on both sides. Only when expectations are transparent can two perspectives turn into a shared course.

To the checklist: moving to external management

Management buy out (MBO)

In a management buy out, managers or employees from within the company take over the succession. They already know the company, its culture and its people. For that closeness to turn into successful leadership, financing, preparation and handover have to be settled early.

To M&A

Management buy in (MBI)

In a management buy in, external managers or investors take over the company. This solution comes into question above all when no suitable successor is available within the family or the company. What matters is careful selection and a handover that passes on knowledge, responsibility and trust alike.

Clear ground rules for working together

Business succession rarely fails for want of contracts. Difficulties arise more often from unclear expectations, accountability and decision paths. Setting out responsibilities, authorities and communication structures in binding form creates the basis for stable cooperation between shareholders and management.

Klare Spielregeln für die Zusammenarbeit

Unternehmensnachfolge scheitert nicht an schlechten Verträgen. Sie scheitert an unklaren Erwartungen, Zuständigkeiten und Entscheidungswegen. Wir sortieren die Zielsetzungen der aktuellen Gesellschafter in eine abgestimmte Struktur. Diese bildet ein verlässliches Bild der Erwartungen, das Fremdgeschäftsführer, MBI- / MBO-Kandidaten oder potenzielle Investoren gegen ihre Ansprüche spiegeln und prüfen können. Wir organisieren hierbei professionelle Herangehensweisen und etablieren eine stabile Zusammenarbeit.

Zu Governance & Compliance

PROJECT EXAMPLES

Business succession is a personal matter. We analyze your initial situation, discuss your objectives, and derive potential courses of action. Based on this, we develop a succession strategy that aligns with your goals, your company, and your shareholders. This strategy serves as a clear roadmap for successful implementation.

Select a topic area

Non-family succession

Securing the future: Non-family business succession

Industry: Craft business (70 employees)

Our role: Consultant, implementation support

Project objectives

Developing a viable succession strategy for transferring the company to non-family ownership
Securing the long-term continuity and competitiveness of the trade business
Defining the requirements for future management and the successor
Transparency regarding potential succession models (MBI, MBO, external management)
Preparing the company for a successful change in ownership and leadership
Ensured continuity for employees, customers, and business partners

Key results

A viable succession strategy with a clear basis for owner decision-making
Successful identification and selection of a suitable successor from outside the family
Defined roles, responsibilities, and decision-making structures for the transition phase
A structured handover and onboarding plan for the new management
High acceptance of the succession solution among managers and employees
Long-term security for the company, jobs, and customer relationships

Approach

Analyzing the company's current position, ownership structure, and the personal goals of the owning family
Assessing the company's strategic, organizational, and financial readiness for succession
Defining the target vision for the future leadership and ownership structure
Evaluating and assessing various non-family succession options
Developing a profile of requirements for the future successor
Identifying and approaching potential candidates through relevant networks and search channels
A structured selection and assessment process
Facilitating conversations between owners and potential successors
Planning the knowledge transfer and the step-by-step handover of responsibilities
Support through the delivery phase and assurance of the successor's integration into the organisation

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External succession

Not every entrepreneurial family finds a successor from within their own ranks.

Integrating ownership and leadershipIntegrating ownership and leadership

How can a succession plan be structured outside of the family?How can a succession plan be structured outside of the family?

We know the succession options! – Let’s talk!

Routes to succession outside the family