The generational change within a company is always a very delicate moment to face, it can bring forth several critical issues, but, if well managed, also numerous opportunities.
According to the latest Cerved surveys, in Italy there are more than 100,000 family businesses which, in percentage terms, account for about 65% of the all businesses. Of these, only 25% survive to the second generation, while only 15% survive to the third.
While it is true that this phenomenon mainly concerns small and medium-sized family businesses, it is equally true that the latter represent the vast majority of the entrepreneurial fabric of our country and, therefore, it is absolutely essential that our entrepreneurs are prepared to face this generational process.
The key word to think about is “process”: it is necessary to have the logic to identify the specific moment in which the change takes place and to be aware that the generational change is precisely a process that, as such, needs to be governed.
In this regard, the following is a summary of the main challenges and opportunities to be taken into account:
- Keep family issues separate from business issues;
- Consider the generational changeover as an obligatory process and, therefore, planning for it over time;
- Managing the transition between the older and younger generation by involving the successor as soon as possible in the company’s mechanisms (possibly even resorting to a period of shadowing at the top);
- Attract resources from outside the company that are able to bring in new skills and support the company in achieving new goals.
BizPlace can offer support to companies that intend to face a generational change process through the M&A advisory service. Our contribution is realized in a 360 degree support that goes from the active search of potential stakeholders, until the conclusion of the operation.
If you need clarification or want to receive more information do not hesitate to contact us!
The BizPlace Team