Generational Change / Succession Plan
An increasing number of middle-class entrepreneurs is faced with the decision of succession for top management. Aside from lacking successors suitable and/or willing to take over, possible drawbacks of legal succession or disputes among the partners could also threaten a company’s continued existence.
A sale to a competitor or a strategic buyer can be eliminated for various reasons. An alternative could be the sale to management through Management Buy-Out (MBO).
If the management is to be completed from outside, we refer to Management Buy-In (MBI). Both are interesting solutions. The company is left in reliable hands; a takeover by a competitor is prevented.
In this case a temporary manager in line with optimal company succession can be an important method of resolution, if the succession situation requires a quick solution due to a lack of successor.
Advantages:
- Protecting the entrepreneur’s lifework for him and his family
- The company can be gradually withdrawn
- The offspring is not brought into the company against their will
- No sale to competitors
- Continuation of the company name and corporate philosophy