“Important developments do not come about in a single day. Changes take time.”
How we work in partnership.
We have been guiding family businesses through generational changes for more than 25 years. In the course of our work, we often encounter three situations that are common in family-run businesses. The following case studies show how we can support those involved in their specific situation. All the cases presented are anonymised to protect confidentiality.
An SME is being passed on to the next generation. This process brings with it a multitude of questions.
The company’s owners are approaching retirement. Who wants to and is able to continue the business once they have left? Will the company stay in the family? Initial talks are held with the next generation. Questions arise about expertise, responsibility and fairness. How the handover is to be organised, legally and financially protected, and how it is to be communicated are further subjects for discussion. A handover within a family usually lasts about six years.
Changes and growth in multigenerational families
The company and the family have grown. Structures are required to establish clear relationships.
The family behind a business changes over time just as the business itself evolves. Corporate governance can be used to regulate the relationship between the shareholders, the board of directors and the management in a transparent manner. In this process, the family defines the common values, sets goals and develops information systems that suit the changed conditions. These are then set out in contracts and agreements.
Conflicts & crises
Conflicts can emerge in any situation. Tackling them together presents an opportunity for all involved.
It is normal to have conflicts – especially given the complex nature of family businesses. However, family cohesion will weaken if the conflicts remain unresolved. The company always suffers as a result. Enduring family businesses have learned to deal with conflict. They are not afraid to address the causes and call in help when needed. We can assist you in finding a solution.
The aim of providing sound advice is to develop a joint strategy and implement it effectively. A structured process is the best way to achieve this: determine the location, define priorities and implement them, review the process regularly and adjust it whenever necessary until we arrive at your objective.