Succession in the family business
Family businesses are complex organizations that, unlike other companies, operate in multiple domains: issues relating to the company, issues relating to ownership and issues affecting the family values. Succession in the family business involves all these aspects together.
In our practice we see that family businesses cannot always be transferred to the next generation. Businesses often grow substantially, requiring other (management) skills, which the new generation sometimes cannot offer. The existing management has gradually built up their expertise. The new generation has to make these steps all at once, which is not easy. The increased complexity of the business environment also plays an important role. In some cases, the children are still too young to follow in the footsteps of their parents, or they are simply interested in another field.
Of course, there are also examples where a company is successfully transferred to the next generation. Such transfers often lead to new impulses and strategies within the family business.
We prefer to make the right considerations in time, taking into account the market and the strategic positioning of the company. Is it strong enough to offer sufficient opportunities for the next generation? And is the new generation capable of taking the new responsibility?
Clifton Finance can offer more than financial advice. The business and strategic issues, as well as competence analysis of the new generation will be taken into account. However, succession can also be found outside the family, or even a sale of the company can be considered. Clifton Finance can help you on all of these areas.