Company succession is a sensitive process, characterised by emotions and potential conflicts. Mediation plays a decisive role in this context. It not only creates space for open communication and finding solutions, but also offers structured approaches for balancing different interests. This introduction highlights the key role of mediation in business succession, which helps to ensure conflict-free handovers and long-term success.
Table of contents
When is mediation useful in company succession?
Company succession is a complex phase, accompanied by emotions and potential conflicts. A decisive role is played here:
- Understanding and overcoming conflicts: Through open and respectful communication, a structured platform can be created to understand and clarify disputes and find viable solutions together. Neutral mediators (ideally with in-depth knowledge of the complexity of company succession) promote an open dialogue and uncover hidden interests.
- Balancing interests: Stakeholders involved often have different views. Balancing these interests, identifying common goals and strengthening the long-term stability of the company are crucial.
- Preservation of relationships: A harmonious succession is important for the company and interpersonal relationships. A respectful dialogue and focus on common interests preserve these relationships.
- Time and cost savings: Early action prevents potential conflicts and saves time and resources. Compared to protracted legal disputes, this efficient way of finding a solution speeds up the succession process.
And also of great importance: Companies with permanent conflicts in management suffer economically in the long term and values are destroyed.
What are the advantages of mediation?
The use of mediation in corporate succession offers far-reaching advantages beyond mere conflict resolution. Here are some outstanding advantages:
- Preservation of corporate values: Mediation enables different perspectives to be shared and common values to be identified, thereby preserving the corporate philosophy and culture.
- Flexibility and individuality: In contrast to standardised legal procedures, mediation offers a flexible and individual approach to conflicts, tailored to the unique requirements of each company and the individuals involved.
- Promotion of sustainable solutions: By focussing on interests, mediation enables the development of long-term sustainable solutions in order to avoid future conflicts and ensure the stability of the company beyond the succession.
- Maintaining interpersonal relationships: Mediation emphasises respectful communication and the preservation of interpersonal relationships, which is particularly important in family-run companies.
- Acceleration of the succession process: Mediation accelerates the entire succession process by finding efficient solutions, which saves time and money compared to lengthy legal disputes and enables a smooth handover.
How does company succession mediation support specific conflicts?
Company succession is often characterised by disputes, be it due to differing ideas about company management, distribution of assets or understanding of roles. Mediation offers effective solutions:
- Clarification of misunderstandings: Mediation creates a space for open communication in order to clarify misunderstandings and differing interpretations. The structured dialogue brings hidden assumptions to light and creates clarity for the successor.
- Balancing of interests: Neutral Mediators support the identification and understanding of individual interests. Focusing on common interests enables solutions that take everyone’s needs into account.
- Development of fair regulations: Mediation enables active participation in finding solutions. This promotes understanding for other perspectives and facilitates the development of fair and sustainable solutions.
- Reduction of emotional stress: In family-run companies, where company succession is often emotionally charged, mediation offers a structured framework to reduce emotional stress and facilitate respectful dialogue.
- Avoidance of legal disputes: Early mediation prevents protracted legal disputes, saves time and money and helps to preserve long-term relationships.
Typical points of contention and problems with company succession
Company succession harbours typical points of contention and problems that need to be addressed at an early stage to ensure a smooth handover. Here are a few examples:
- Uncertain future prospects: Uncertainty about the future direction of the company, which can lead to differences of opinion regarding strategic decisions, market positioning and innovation requirements.
- Example: Two successors look at a signpost with different directional arrows, one for innovation and diversification, the other for tradition and stability.
- Distribution of roles and competences: Clear definition of roles and competences of successors to avoid power imbalances and differences of opinion. Clear communication at an early stage is essential.
- Tensions within the family: Family-run companies are susceptible to internal tensions due to different perspectives and expectations of family members.
- Distribution of assets: The fair distribution of assets, shares and financial resources among the successors can lead to tensions and conflicts.
- Example: A fair balance with company shares, financial resources and assets that have to be distributed between different successors.
- Lack of communication: A common problem in company succession is when information is not shared transparently or decisions are made without sufficient consultation.
The role of the mediator in finding a solution
The mediator plays a crucial role in company succession by acting as a neutral intermediary and promoting constructive solutions. Key aspects of their role include
- Neutrality and impartiality: The mediator is a neutral third party with no personal interests in order to provide a balanced view of the conflict situation.
- Structured dialogue: Through a targeted framework, the mediator promotes open communication and helps to clarify misunderstandings and identify the causes of conflicts. Depending on the content of the dispute and the pace of the parties involved, a mediation process can be completed successfully after just a few appointments.
- Focus on interests: Instead of focussing on positions, the mediator concentrates on the interests of the parties involved in order to identify common goals.
- Creative problem solving: The promotion of creative and flexible solutions through different perspectives contributes to innovative approaches to company succession.
- Promoting communication and understanding: The mediator creates a space for respectful communication in order to deepen understanding between the parties.
- Enforceable agreements: Support in drawing up clear, fair and enforceable agreements to avoid conflicts in the long term.
The course of a mediation procedure in company succession
The mediation process in business succession follows a structured procedure aimed at resolving disputes and working out viable agreements. The typical course of a mediation process in this context is outlined below:
Step 1: Initial meeting and contract conclusion: The process begins with an initial meeting in which the mediator explains the process to the parties and discusses the basic principles of mediation. Once all parties have agreed (voluntariness is the overriding principle), a mediation contract is signed which sets out the framework conditions, confidentiality rules and the voluntary nature of the process.
Step 2: Clarification of the initial situation: The mediator obtains an overview of the initial situation and the people involved. The most important issues and points of conflict are also identified in order to determine the focus of the mediation process.
Step 3: Individual interviews (optional): Individual discussions can be held with those involved as required. These serve to understand individual perspectives and needs before the joint dialogue begins.
Step 4: Structured dialogue and problem analysis: The actual mediation starts with a structured dialogue between the parties. The mediator encourages open communication, clarifies misunderstandings and analyses the underlying problems in order to identify common interests and goals. It involves a lot of ‘interpreter work’ and understanding of the other party’s point of view.
Step 5: Development of solution options: Based on the identified interests, solution options are developed together. The mediator supports the parties in finding creative approaches and discussing alternatives. A jointly developed solution has a completely different energy for further cooperation than a solution proposed from outside.
Step 6: Agreement and implementation: As soon as an agreement is reached, a written agreement is drawn up. This includes the arrangements made and is signed by all parties involved. The mediator can also support the realisation and implementation of the agreement.
Step 7: Finalisation and follow-up: The mediation process ends with a final discussion in which the agreement reached is reflected upon. If necessary, follow-up measures can be agreed to ensure that the agreements reached are effective in the long term. A protocol is recommended.
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Conclusion
The use of mediation in business succession is a crucial contribution to overcoming the complex challenges of this process. Mediation not only enables the understanding and management of conflicts, but also promotes the balance of different interests, preserves interpersonal relationships, accelerates the succession process and offers far-reaching benefits for the preservation of company values and sustainable solutions. Overall, mediation creates a structured framework to ensure a successful and harmonious business handover. Safe, secure, faster and more cost-effective.
