No matter whether the succession is to take place within the family or an external third party will continue to write the story of the life’s work: For both the transferor and the transferee, fundamental and important personal life issues are on the agenda!
Unbelievable, but true: Harvard University has shown in a study of European SMEs that unresolved emotional issues are decisive for over 80% (!) in successions that fail.
How should a responsible owner now act if, despite competent legal and tax advice, there is still such a great danger? How can I, as an entrepreneur, recognise these emotional traps and stumbling blocks? And what about the balance between love, power and money, especially when there is a generational change in family businesses?
Succession is not to be taken lightly! Neither from the point of view of the individual nor for the national economy. In Austria alone, there are around 5,000 succession projects every year and around 50,000 jobs are at stake!
The handover is a permanent strategic management task that cannot be carried out alone in a “quiet room”. This is also the reason for the widespread recommendation to start dealing with the topic in one’s mid-50s. Ideally, the person in charge should look for a “sparring partner”, a companion who is ideally not involved in the emotional issues and who has a competent background knowledge of such projects.
Michael Feier, KERN partner in AustriaOur recommendation from practice: Do not underestimate the interaction of the family, company and property systems.
Image: Canva.com
