Generational transitions take time
Be prepared that an exit as a business owner requires effort and takes time, and if the business is sold as part of a generational transition, it requires even more effort.
In principle, a generational change involves a legal, financial, organizational and mental shift. This makes the process complicated and requires a lot of planning.
As a business owner, you have a number of basic considerations that you should make early on in the process.
1. When is the right time?
A generational change can easily take several years. Therefore, be prepared for the handover to be a process that takes time.
2. What is the goal of the handover?
Is it to ensure the development of the company towards a long-term visionary goal? Is it to make room for the next generation? Is it to secure a profit? Or is it to be able to move on to something else?
3. Who can/should take over?
Can the business be passed on to the next generation? To more than one family member? To senior executives, or to an external director? There are usually multiple solutions to even the most complicated challenges, so it’s important to identify the best solutions for the individual owner and/or business.
4. How should the handover be orchestrated?
Once the initial ownership clarification is in place and the preferred solutions defined, a detailed plan is made for the execution of the exit strategy. The process is qualified by using a circle of trusted advisors, each with specialized expertise in their field.
Confidential advice from trusted experts
At Kielberg Advokater, we contribute throughout the planning and execution phase of succession planning. Our advice is based on the business owner’s wishes for speed, security and profit.
We offer our advice in the following areas:
- Composition of the advisor team
- Board work
- Succession planning
- Valuation
- Tax and wealth advice
- Financing & fundraising
- Loans, gifts & inheritance advances
- Wills & Prenuptial agreements
- Sales maturity of companies
- Owner agreements
- Structuring the sales process
- Completing the sale
- Business transfer
- Warrants & incentive programs
Contact us for a no-obligation chat about the prerequisites and opportunities for a successful succession. We’ll challenge you, ask the tough questions and help you create a realistic and sustainable plan for the process.
