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.
Speed impressive, form always appropriate to the situation, behaviour honest …
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
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.
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.
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.
5
Consulting and coaching
Implementation of measures and support as needed through counselling or coaching. Your needs decide.
6
Financing partner
Optionally, we support the financing of a generational change, the time and information requirements of which are often underestimated.
Known from numerous publications
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.
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.
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Frequently asked questions about the generation change
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.
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!
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.
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:
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.
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.
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.
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.
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.
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.
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
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
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