The success of a generational transfer largely depends on how well the family is able to internally discuss and decide on the securing of continuity. The transfer should be followed through gradually and in the long term.
A generational transfer involves a number of emotional aspects, due to the shift of management and ownership arrangements. Working through these issues often takes the most time in the actual transfer and their significance should therefore not be trivialised.
In an ideal situation, the family jointly discusses who the best manager would be to secure the continuity of the company in the future, both with regard to the business operations and the goals of the family members. The transferor should plan the desired schedule and inform the others of this.
As for financial aspects, ensuring the transferor’s pension security and solving the continuators’ financing questions are naturally emphasised.
Does the transferor need to be compensated for their company in full?
Will they be satisfied with a transfer through a gift-type transaction or perhaps a full donation?
Is it possible for the continuators to receive financing for the ownership arrangements?
When the technical implementation of the transfer approaches, it is advisable to seek assistance from an expert. Your local Centre for Economic Development, Transport and the Environment will provide assistance in both business operations development and transfer plan preparation.