Genera­tio­nal change in the compa­ny: Securing values and conti­nuing the company’s history

The genera­tio­nal change in family businesses is a decisi­ve moment that goes far beyond the mere manage­ment of the compa­ny. It is a transi­ti­on that should be careful­ly planned and careful­ly execu­ted in order to preser­ve the values and tradi­ti­ons of the compa­ny and at the same time open up new perspectives.

Compa­ny succes­si­on within the family needs soluti­ons that also take into account emotio­nal needs

We support families who want to trans­fer their compa­ny values to a new genera­ti­on safely and without conflict with the holistic KERN family process. With consul­ting, modera­ti­on, coaching and media­ti­on, we enable a secure future and the conti­nua­tion of the compa­ny and family history.

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How to make your genera­ti­on change a success. The expert guide for
Family business.

Concen­tra­ted exper­ti­se and compact infor­ma­ti­on. 25 KERN experts have summa­ri­sed the most important infor­ma­ti­on for your successful compa­ny sale on 150 pages.

German Customer-Awards 2024

It helps enorm­ously to have a neutral perso­na­li­ty as a contact person for all members of the family. 

Our inter­nal family succes­si­on and the coaching of my sons was handled very sensi­tively and with commit­ment by Mr Koerber. Many insights and activi­ties would have been left out in our family without the KERN support of our genera­tio­nal change. It helps enorm­ously to get an outside perspec­ti­ve and to have a neutral perso­na­li­ty available as a contact person for all members of the family.

K.S., entre­pre­neur from Essen  , Person­nel service provider 

Parents and child­ren from family businesses have a very concre­te benefit from this 

Our clients are medium-sized compa­nies and the challenges of genera­tio­nal change, compa­ny sales or emergen­cy provi­si­ons are ‘peren­ni­al issues’ for us. We have been working with Mr Koerber and KERN for years and value his practi­cal knowledge and the orien­ted training and coaching. Parents and child­ren from family businesses benefit from this in a very tangi­ble way.

W.S., further educa­ti­on insti­tu­te from Rheda-Wiedenbrück  , Head of a nation­wi­de acade­my for trading companies 

For us as a family business, the support provi­ded by Mr Koerber was a great benefit 

For us as a family business, combi­ned with the many challenges of the future genera­ti­on change, the support of Mr Koerber was a great benefit. Especi­al­ly through media­ti­on, we can now under­stand each other better and deal with conflicts differ­ent­ly. We recom­mend working with the experts from K.E.R.N. when problems arise in the succes­si­on process!

J.M., entre­pre­neur from Osnabrück  , Manufac­tu­ring, whole­sa­le and retail trade 

I have enjoy­ed working with KERN very much 

I have very much enjoy­ed working with KERN and, as a repre­sen­ta­ti­ve of the buyer side, am always pleased when sellers ? especi­al­ly family businesses ? recei­ve holistic advice and are speci­fi­cal­ly prepared for a sale.

F.H., respon­si­ble M&A manager in NRW  , Inter­na­tio­nal services group 

… Very satis­fied and would recom­mend Kern at any time and without reservation. 

What I parti­cu­lar­ly liked about KERN and Mr Ingo Claus was the very profes­sio­nal and trusting way in which he dealt with me as a compa­ny seller and the interes­ted parties. Mr Claus always acted in a soluti­on-orien­ted manner and was in constant dialo­gue between me as the seller and the poten­ti­al buyers. Even though the sale was not comple­ted in the end, which was due to exter­nal circum­s­tances, I was very satis­fied with the work done by KERN and Mr Claus and would recom­mend KERN and him at any time and without reservation.

M.B., entre­pre­neur from Lower Saxony  , Owner of a proper­ty develo­p­ment company 

After a lengthy selec­tion process we decided on KERN 

By its very nature, there are not multi­ple oppor­tu­ni­ties when selling a business. That is why choosing the right manage­ment consul­tant is so important. After a lengthy selec­tion process, we decided on KERN and Holger Haber­mann. With great perso­nal commit­ment, Mr. Haber­mann has successful­ly maste­red all tasks, both in terms of content and manage­ment. I would parti­cu­lar­ly like to empha­sise the wide-ranging exper­ti­se, the metho­di­cal approach, the objec­ti­ve, calm manner and the straight­for­ward­ness in the discussion.

H.K., entre­pre­neur from Bavaria  , Owner of an infor­ma­ti­on techno­lo­gy company 

… We have achie­ved our goal and can defini­te­ly recom­mend working with KERN

The KERN team was recom­men­ded to me as part of our compa­ny sale and, in retro­s­pect, we are very glad to have recei­ved this tip. The negotia­ti­on process for the sale was complex, lengthy and someti­mes threa­ten­ed by emotio­nal misun­derstan­dings in the outco­me. However, thanks to the great experi­ence and skill of our KERN consul­tant, we achie­ved our goal and can defini­te­ly recom­mend working with KERN.

J.F. , Entre­pre­neur in the Osnabrück area  , Trade and techni­cal services 

Especi­al­ly the serious­ness and profes­sio­na­lism gave me a secure feeling at all times 

My pre-selec­tion decis­i­on to 100% proved to be the right one. KERN did a really good job from the prepa­ra­ti­on of my compa­ny in an exposé, to the search for buyers, to the facili­ta­ti­on of negotia­ti­ons and the comple­te imple­men­ta­ti­on of my succes­si­on. In parti­cu­lar, the serious­ness and profes­sio­na­lism gave me a secure feeling at all times. Our goal was successful­ly achie­ved in a good 8 months. I am happy to recom­mend KERN to others.

G.O.K., entre­pre­neur from Hamburg  , Service provi­der with own branch locations 

Without the view from outside, we would proba­b­ly never have reached our goal so quick­ly and safely 

In the context of my compa­ny succes­si­on, the merger with a compe­ti­tor compa­ny was the ideal soluti­on. The KERN team, and especi­al­ly Mr. Koerber, accom­pa­nied us sensi­tively as a modera­tor and process facili­ta­tor and combi­ned the interests of both negotia­ting partners well. Without the view from outside and the negotia­ting experi­ence, we would proba­b­ly never have reached our goal so quick­ly and safely!

J.K. Entre­pre­neur from Berlin  , Trade and services 

Speed impres­si­ve, form always appro­pria­te to the situa­ti­on, behaviour honest … 


C.K., entre­pre­neur from the Weser-Ems region  Produc­tion compa­ny and trading company 

I would like to thank you very much for your support during the sale of the compa­ny. The speed was impres­si­ve, the form always appro­pria­te to the situa­ti­on, the behaviour honest and unpre­ten­tious ? it could­n’t have been better! Thanks to your support, we were able to conclude this project satis­fac­to­ri­ly for all of us.

I have enjoy­ed working with KERN very much 


F.H., respon­si­ble M&A manager in NRW  Inter­na­tio­nal services group 

I have very much enjoy­ed working with KERN and, as a repre­sen­ta­ti­ve of the buyer side, am always pleased when sellers ? especi­al­ly family businesses ? recei­ve holistic advice and are speci­fi­cal­ly prepared for a sale.

… how important your topics are and that you were very convin­cing as a speaker. 


Lothar Sand  German Publishers and Booksel­lers Association 

Thank you very much for your presen­ta­ti­on at our confe­rence. The unani­mously positi­ve feedback from the 150 members of the audience confirm­ed how important your topics are and that you were very convin­cing as a speak­er from KERN.

The holistic KERN family process for genera­tio­nal change. Start now into a new life of freedom after your entrepreneurship.

1

Clari­fi­ca­ti­on of the status

Clari­fi­ca­ti­on of the intra-family status as well as concerns and goals in relati­on to the genera­tio­nal change.

Learn more >

2

Indivi­du­al and group talks

Indivi­du­al and group discus­sions with all members of the family system to identi­fy indivi­du­al interests.

3

Family confe­rence

Develo­p­ment of soluti­on-orien­ted measu­res. Integra­ti­on of econo­mic, fiscal, legal and emotio­nal aspects.

4

Media­ti­on

Initia­ti­on of a struc­tu­red media­ti­on process to resol­ve conflicts under the “win-win” principle.

Learn more >

5

Consul­ting and coaching

Imple­men­ta­ti­on of measu­res and support as needed through counsel­ling or coaching. Your needs decide.

Learn more >

6

Finan­cing partner

Optio­nal­ly, we support the finan­cing of a genera­tio­nal change, the time and infor­ma­ti­on requi­re­ments of which are often underestimated.

Learn more >

Known from numerous publications

Frankfurter Allgemeine
Süddeutsche Zeitung
Thueringer allgemeine Zeitung
Handelsblatt
Saarbrücker Zeitung
Mittelstand Nachrichten
Radio Bremen
impulse
Zeit Campus
Handwerk Magazin
Osnabruecker Zeitung
Financial Planning
Weser Kurier
Unternehmer Radio
Kronen Zeitung

Success factors for the genera­ti­on change

Family businesses are a special kind of business, as they are often associa­ted with high level of commit­ment and the diver­se work of genera be built up. There­fo­re, they can be a source of pride and joy within a family. And these lifeworks always have a high emotio­nal share in the owner­ship struc­tu­re. After all, it is not always just happy days in entre­pre­neur­ship, but also pain, disap­point­ments and defeats associa­ted with it, and all this is what makes SMEs (small and medium-sized entre­pre­neurs up to 250 MA) so unique.

To ensure a smooth transi­ti­on and maximi­se the chances of success for the future of the business, there are Four essen­ti­al success factorswhich must be taken into account.

Erfolgsfaktoren für Generationswechsel im Unternehmen

1) Clari­fy basic questions

An essen­ti­al step in planning the succes­si­on of a business is to clari­fy all the issues that arise in relati­on to the business and the family. This also includes Finan­cial and legal impli­ca­ti­ons of a transi­ti­on under­stand and address possi­ble conflicts of interest. This ensures that all parties invol­ved can under­stand the parame­ters of the succes­si­on plan and helps to avoid misun­derstan­dings in the future. Never link your relati­onships in the family system with condi­ti­ons in the compa­ny system.

2) Create a succes­si­on plan

Once the basic questi­ons have been clari­fied, the next step is to draw up a detail­ed succes­si­on plan. This plan should include the roles and respon­si­bi­li­ties of the indivi­du­al family members, a Timeta­ble for the transi­ti­on and a clear defini­ti­on of the long-term goals and guide­lines are included. This ensures that all stake­hol­ders are on the same page and that everyo­ne under­stands their role in the succes­si­on process. At the same time, suffi­ci­ent space should be designed for new ideas from the next generation.

3) Define selec­tion crite­ria for poten­ti­al successors

To ensure a successful transi­ti­on, it is important to estab­lish clear selec­tion crite­ria for poten­ti­al business succes­sors. These crite­ria should be based on the speci­fic needs of the compa­ny and focus on charac­te­ristics such as Experi­ence, training and leader­ship skills focus. This ensures that the best possi­ble succes­sors are selec­ted to lead the compa­ny. It is not the family status that decides on the succes­si­on, but the quali­fi­ca­ti­on of the manage­ment heads that must be decisive.

4) Estab­lish clear rules for the hando­ver phase

The hando­ver phase of the succes­si­on plan is a crucial part of the process. There­fo­re, it is important to estab­lish clear rules and expec­ta­ti­ons for both the current owners and the business succes­sors. For this purpo­se Guide­lines for commu­ni­ca­ti­on and decis­i­on-making as well as for finan­cial obliga­ti­ons and deadlines.


Do you have confi­den­ti­al questions?

Nils Koerber - Portrait

Book your desired date direct­ly online!

I look forward to getting to know you.

Nils Koerber

Frequent­ly asked questi­ons about the genera­ti­on change

When is the right time for a genera­tio­nal change in family businesses?

There is no clear recom­men­da­ti­on for this. After all, for a genera­tio­nal change in family businesses, there must be the right moment on both sides be available ? for trans­fer­ors and for transferees.

What we can recom­mend from our experi­ence, however, is that when the next genera­ti­on is ready, the training steps are also comple­ted. Serious and concre­te genera­tio­nal change in the family business should be agreed.

Within the frame­work of a transi­ti­on phase, both sides, the trans­fer­or and the trans­fe­ree, can then imple­ment the business succes­si­on project.

How do I basical­ly clari­fy the possi­ble genera­tio­nal change for our family business?

First of all, we recom­mend clari­fy­ing the inner attitu­de to this questi­on. And for this, we as experts belie­ve, the Freedom in this so important life decis­i­on before the obliga­ti­on of having to take over the family business.

Talk to your child­ren or close relati­ves calmly about the options and perspec­ti­ves of taking over a compa­ny through a genera­tio­nal change. This is not a matter for just anyone. This requi­res time and a suita­ble framework.

If neces­sa­ry, have a neutral expert accom­pa­ny you in such a highly emotio­nal discus­sion situa­ti­on. ?
And give your poten­ti­al succes­sor or succes­sor suffi­ci­ent time to consider this offer.

There is a wealth of content that is important for such a clari­fi­ca­ti­on of a genera­tio­nal change in family businesses.

Take advan­ta­ge of our offer of a free webinar on the special topic: Mista­kes during the genera­ti­on change in family businesses 

Book your place now!

What skills should my succes­sor bring with him/her?

This questi­on is about the future of the compa­ny. Not about a subjec­ti­ve simila­ri­ty of possi­ble simila­ri­ties between the trans­fe­ree and the transferor.

Ideal­ly, exami­ne together for the genera­ti­on change in your compa­ny which Leader­ship quali­ties and focus for the future of the compa­ny after the compa­ny succession.

Or which quali­ties and positi­ons might have to be filled differ­ent­ly so that the Natural strengths and compe­ten­ces of your succes­sor can develop their effect well.

Together with scien­tists and recog­nis­ed poten­ti­al analy­ses, KERN has develo­ped a Indivi­du­al entre­pre­neur check develo­ped. In this way, people who want to take on a leader­ship succes­si­on in a compa­ny can check their poten­ti­al online and uncover resour­ces or develop charac­te­ristics in a targe­ted manner.

At My Entre­pre­neur Check you can get started straight away.

How can I, as the trans­fer­or, define or disco­ver my new role after a successful genera­tio­nal change in the family business?

This important questi­on has for proba­b­ly the highest priori­ty for any trans­fer­or. A new chapter of life is begin­ning and this needs to be disco­ver­ed and prepared for.

We cannot clari­fy this for you optimal­ly in the brevi­ty of a few sentences.

But what we can do for you with our experi­ence in this field is to recom­mend a very special seminar:

Change of staff Compa­ny sale

In this seminar you will work concre­te­ly on this question.

Or you can read the relevant book and Amazon bestsel­ler by KERN founder Nils Koerber about: The art of letting go

Also available as an audio book, of course.

What are the effects of a change of owner­ship in the genera­ti­on change of a family business on partners (custo­mers, suppli­ers, banks, etc.) and in the public?

Proba­b­ly predo­mi­nant­ly a positi­ve effect. Your custo­mers, your suppli­ers or simply the public in the micro­c­osm of your business environ­ment, tends to take the safeguar­ding of a compa­ny and its jobs serious­ly. majori­ty as a good develo­p­ment and a good messa­ge on.

Remain so Grown struc­tures, offers and ties preser­ved and can conti­nue to be used in the future.

Our expert tip: Use the genera­tio­nal change in your family business as a good public messa­ge and connect the regio­nal media at all levels with this event.

How could the genera­tio­nal change and the trans­fer of the compa­ny be commu­ni­ca­ted intern­al­ly as well as externally?

All employees in the compa­ny should be the first to know when there is clari­ty in the family about the planned genera­tio­nal change. This creates Relia­bi­li­ty and trans­pa­ren­cy for the periods of the hando­ver phase.

And as soon as clear respon­si­bi­li­ties also change sides between the trans­fer­or and the trans­fe­ree in the genera­ti­on change, it is also a good time for the Commu­ni­ca­ti­on outside the compa­ny.

How does a company’s value come about and is it at all important in a genera­ti­on change?

There are current­ly two relevant valua­ti­on methods for family businesses:

The capita­li­sed earnings value method (IDWS1) and the AWH process (parti­cu­lar­ly suita­ble for craft businesses).

With these recog­nis­ed methods, the value of a compa­ny can be calcu­la­ted and at the same time also serves as a basis for possi­ble assess­ments by the tax authorities.

Expan­ded, such a valua­ti­on also makes sense becau­se it brings trans­pa­ren­cy to the various values in a family’s assets within a family and in the case of several heirs to a trans­fer. This helps to avoid possi­ble conflicts.

We at KERN make such valua­tions for family businesses on an almost daily basis. For a quick value assess­ment and first, The multi­pli­er method is also helpful for a rough estima­te.. In this proce­du­re, market-relevant values from other compa­ny sales are used and multi­pli­ed by the results of a company.

With our Enter­pri­se Value Calcu­la­tor you can carry out an initi­al value assess­ment online free of charge within 5 minutes. Use our compa­ny value calcu­la­tor to your advantage.

What needs to be taken into account with regard to tax and legal aspects when there is a genera­tio­nal change in a family business?

The comple­xi­ty of legal forms of a compa­ny, the tax constel­la­ti­ons of compa­ny and persons makes an answer impos­si­ble at this point.

Expert advice is always neces­sa­ry here. Especi­al­ly with regard to inheri­tance tax and legal peculia­ri­ties, which should not be underestimated.

Since changes in the politi­cal frame­work of the legis­la­ti­on can occur on an ongoing basis, you should seek out an experi­en­ced advisor for this and, Tailo­red to your compa­ny and family situa­ti­on, get advice.

What effects does a genera­tio­nal change in business succes­si­on have on a company’s finan­cing structure?

That depends entire­ly on the chosen construct of a compa­ny trans­fer. Will it be given away, inheri­ted or sold?

Depen­ding on the type of trans­fer, the trans­fer­or can and will ensure that he is no longer perso­nal­ly liable. The trans­fe­rees of a compa­ny then frequent­ly also take over the Comple­te liabi­li­ty in all finan­cing matters of the company.

However, this varies great­ly from case to case and should be weighed up with all the advan­ta­ges and disad­van­ta­ges under the advice of experts in the circle of owners and succes­sors. And this then concerns not only factu­al frame­work condi­ti­ons, such as liabi­li­ty, but also the emotio­nal aspects in the constel­la­ti­on of entre­pre­neur and succes­sor in business succession.

How do I find reputa­ble advisors to accom­pa­ny the hando­ver process in the genera­tio­nal change of a family business?

Look for proven referen­ces and exten­si­ve experi­ence. Having accom­pa­nied a genera­ti­on change once does not make a consul­tant an expert.

When there is a genera­tio­nal change in the family business, three systems are touch­ed: The families, the compa­ny itself and expands the owner­ship structure.

And this comple­xi­ty of systems, legal and fiscal frame­works as well as emotio­nal proces­ses, should be a and experi­en­ced advisors can provi­de as know-how.

So ask speci­fi­cal­ly for referen­ces from other families.

We at KERN disclo­se a wealth of our referen­ces in concre­te terms. With well over 100 indivi­du­al state­ments, you can get a good pictu­re for yours­elf: Custo­mer testimonials

Which books are recom­men­ded for a business hando­ver in the context of a genera­ti­on change?

As we are convin­ced of our exper­ti­se, we are happy to recom­mend the books from our own partner circle at: KERN books on business succes­si­on, process knowledge and entrepreneurship

What are the most common problems with a genera­tio­nal change?

Since three diffe­rent systems are invol­ved, the Comple­xi­ty of family, compa­ny and owner­ship struc­tu­re not to be undere­sti­ma­ted.

When it comes to genera­tio­nal change in family businesses, one of the most relevant stumb­ling blocks is the inter­nal ambigui­ty of the actors invol­ved on the trans­fer­or and trans­fe­ree sides.

They are the emotio­nal backgrounds and very diffe­rent function­al logics of the affec­ted systems that cause problems.

And when conflicts arise, which is actual­ly also quite normal, we recom­mend proce­du­res such as media­ti­on. You can find details here: Media­ti­on Roadmap