The personal impact of a business transfer in family circles is quite often underestimated. It is often seen as a mere business deal, guided by the accountant.
Although everything indicates that a good and warm basis for continuity is laid in a friendly atmosphere, the dangers are now real. We give you 5 tips that you should not forget when succession within the family.
1. Record the communication
Family members often only need one look to know exactly what the other is thinking. Although nonverbal communication is important, it does not say as much as the spoken word. By thinking for someone else and thus making assumptions, you run the risk of surprises.
When talking about "the transfer of the business," make sure to take notes of the conversations.
In principle, a business transfer is a legal transfer. In any subsequent discussions, the minutes can be pulled out and there is a clear picture of how a particular topic was thought about at the time.
2. Start planning in time
By no means every entrepreneur is on time with mapping out all the steps you need to take as an entrepreneur to successfully transfer the business to the next generation.
Is the successor ready? Does he or she already have the right competencies to run the business successfully?
When the business transfer needs to be completed quickly, chances are that the business side of the transfer will be taken care of, but the personal transfer will be botched.
3. Create a new strategy together
Once the business is transferred to the new generation, new dynamics always arise. Things are always going to change. Therefore, make it fully clear to each other what your strategy is.
As transferor you have your interests to safeguard, but as transferee you also have your interests. Precisely the common interests must be aligned in detail. What are your personal vision and personal goals? Both transferee and transferor must work these out well and discuss them together.
There is also the business acquisition vision. There should be a balance between both visions. In this way you have a clear picture of what the challenges are to make the transfer a success.
4. Involve the family in the business transfer
The emotional bond that the other family members have is often overlooked. For example, when it is thought that the other siblings were not interested in the business anyway and therefore need not interfere with the transfer.
All too often it turns out that after the actual deal, there are all kinds of issues within the family. This often causes the most arguments.
In the orientation and preparation phase, plan how you want to inform close family members about the proposed business transfer. Prevention is better than cure.
5. Determine the role of the transferor after transfer
The transferor has often spent most of his or her life working on the business with blood, sweat and tears. From the first day of the acquisition, the transferee throws himself into the business with the implementation of his/her own vision and strategy.
By discussing this moment well in advance, you can take into account whether the transferor will have another role, and what this role will look like.
