Company succession is not a factual topic: the process is indeed characterised by legal and tax formalisms. Nevertheless, the success of the project ultimately depends on emotional factors. Since it is usually the entrepreneur’s life’s work that is being handed over, it is only understandable that the transferor in particular approaches the subject emotionally.
Anyone who has founded, built up or further developed a company knows how much heart and soul and work this means. This lifetime with all its ups and downs demands the full attention of every entrepreneur. Emotional outbursts can already occur during the sales process. In this case, the buyer or transferee is well advised to show the necessary understanding and to continue to negotiate in an appreciative manner. We have already published a suitable article on this topic on the Consultant exchange published. Those accompanying a business succession must also think about how the transferor will be prepared for his or her time after the (hopefully successful) transfer before the divestment process begins.
In our daily practice we have many such preparatory talks with entrepreneurs. It is important to almost all interlocutors that the employees are “well taken care of” even after the entrepreneur leaves. However, when we direct the questions specifically to the person of the entrepreneur, we find that there are very different reactions to this.
On the one hand, there are the entrepreneurs who look at the handover process objectively. They think that the time afterwards is not important to them because this is, after all, “the buyer’s business”. On the other hand, there are of course those who cannot really let go because there are too many personal feelings in the way.
Objective or non-objective - The time afterwards must be planned
What both types of entrepreneurs have in common is the passage of time. At some point, the day comes when the handover takes place. The entrepreneur then leaves his own company. What is then often found is that business contacts are not the same as friendships. These kinds of relationships - exceptions always confirm the rule here as well - are often only borrowed. The transferor must be aware of this or be prepared for it by his experienced companion. Consequently, one of the tasks in the run-up to the transfer is to take a close look at his circle of friends and acquaintances and to assess them honestly. Does the contact only last because economic interests are satisfied? Is the contact still active after my time as an entrepreneur? It is important to question this and the entrepreneur should be very honest with himself here. An honest and serious examination of this important point can save the transferor from disappointment. Therefore, it must definitely be part of a successful handover strategy.
Tips for further reading:
Business sale vs. real estate sale
Advice traps in the process of business succession
The costs of a business succession or an M&A project
How do you recognise a reputable business sale advisor?
Selling a company in the IT industry
Company successions in East Westphalia and Bielefeld are on the rise
Critical succession situation in NRW
The 5 most important contents of an entrepreneurial emergency kit
The vast majority of entrepreneurs have invested a lot of love and hard work in their “baby”. Therefore, it can become a bit more emotional in the handover process. The companions should therefore think early on about how to prepare the transferor for the time after the handover. Practically everyone is concerned that the employees will continue to do well under the new owner. With regard to themselves, there are two camps among entrepreneurs: some see the time after the sale as calm and the responsibility of the successor. The others, on the other hand, find it difficult to let go.
Many business relationships are only temporary. This should be made absolutely clear to the transferor. This includes taking a close look at the circle of acquaintances and assessing them honestly. Is the contact linked to economic needs? Will it last beyond my time as an entrepreneur? This is an emotionally immensely important part of a successful transfer strategy. Therefore, the entrepreneur should definitely be honest with himself here. This is the only way to avoid unpleasant disappointments.
