Family-owned businesses have special skills - they have an “x factor” unlike any other type of business. But they also have to be aware of some special pitfalls. In both situations, what is special is the family.
There is no “one size fits all” for an ownership transfer of a family-owned business. Often, the business is a life’s work which the founder has spent many years building up. Not just money and time have been invested but also a lot of passion, and the continued development of the business is often of great importance to the entire family.
We give you five useful tips to create the good foundation of a harmonic ownership transfer.
Five useful tips for an ownership transfer
- Base the ownership transfer on what is good for the business. This where the future cash flow is to come from.
- Ownership transfer is an opportunity to take the business to a new level. Seize the opportunity!
- Create a team which can help you. For instance a board of directors or advisers. Find someone who can participate for a long time because it is all about continuity - being able to maintain and adjust along the way.
- Family-owned businesses have a very long-term aim with their business. Use the same approach in the ownership transfer. Changes are necessary but they can take place gradually. And remember to preserve what makes the business special.
- Funds, ownership and management do not always have to go hand in hand 1:1. Consider all the different options. It is also important to find simple solutions so that the day-to-day management has something to be guided by.