Succession within family businesses
Questions regarding succession within family businesses
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 within family businesses concerns all three of these aspects.
In our experience, 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 been able to gradually build up their expertise. The new generation has to make these steps all at once, which is difficult. Increased complexity of the business environment also contributes to the difficulty of succession. Another problem with succession is that in some cases, the children are still too young to follow in their parents’ footsteps, 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 on these responsibilities?
Clifton Finance can offer more than financial advice. Business issues, strategic issues, and competence analyses of the new generation will be taken into account. However, succession can also be found outside of the family. Even a sale of the company can be considered. Clifton Finance can help you in all of these areas.