The entire know-how as well as the decision-making processes are tailored to the founder, wrong priorities are set or the company owner is not yet emotionally ready to hand over the life’s work. Three to five years before the planned handover, consideration should be given to the type of succession that might be considered. Successor candidates within the family often do not have the same professional qualities as potential external managers. In order to facilitate the transition, the timely installation of a second management level and the introduction of management and controlling processes are also unavoidable. An inventory of the economic situation helps to identify the market position as well as opportunities and risks. External advisors such as the company’s bank, tax advisors, auditors and M&A consultants are indispensable in this respect. In addition, a majority or minority stake by experienced investors — such as those from VR Equitypartner — can be helpful as the search for successors extends over several years. The equity financier is a subsidiary of DZ BANK and focuses on supporting successions in the SME sector.
In the event of an unprepared succession, VR Equitypartner has developed a concept with which the resulting disadvantages can be avoided and the future of the company can be shaped positively through targeted investments. Regardless of whether it is a majority or minority stake, VR Equitypartner brings its expertise and network to the table and helps to make its own company ready for succession in the foreseeable future. This is because the new financial resources can be used to prepare the strategic realignment, strengthen the market position and make necessary investments that could not be realized with the existing equity. A comprehensive process with the goal of generating a solution that honors the life’s work and continues it accordingly.
Portrait: VR Equitypartner
All entrepreneurs sooner or later face the decision of who should continue the company.