Critical Success Factors
Important Individual Aspects in Succession Management
There are a number of dangers in the succession process that might be insignificant in one case, yet in another they could spell the end of your plans. We have identified six such individual aspects, or critical success factors:
There are a variety of stakeholders involved in the succession process. As a rule, there is disagreement regarding the objectives. Which group has what influence on the succession process and what power do they wield?
Succession Capacity of the Company
The company can be prepared for its new direction independently of the succession planning:
- Separation of Private and Business Assets
- Increasing the Level of Organization and Formalization
- Solve the Problems from the Past
Coping with Advisory Services
Many SMEs are not used to dealing with advisory services on a daily basis. It is particularly worthwhile, therefore, to exercise care in selecting and managing advisory services.
- Properly Identify Advisory Needs
- Set Clear Selection Criteria
- Actively Manage Advisors
Taxes and the Law
Early planning in this area pays off, literally. It is usually worthwhile to consult the relevant specialists Moreover, particularly in the field of law, written agreements with contractual regulations can be drafted, thus averting conflicts in the future (e.g. marriage contract, inheritance contract, shareholders' agreement).
Financial Questions in the Succession Process
Regulating succession often requires an assessment of the company and new financing. Debt capacity, the level and conditions of financing must also be considered. For inheritance law reasons, these questions arise not only during the sale of a company, but also when it is transferred within the family.
The Future of the Company
If an entrepreneur is taking a phased approach to stepping down, his or her role in the company must be clearly defined at each stage. Great importance must be attached to the alternative areas of responsibility that the entrepreneur develops.
We're always here for you, and that's on a personal level too. To arrange a personal consultation or to discuss your questions about succession, call us toll-free on 0800 88 88 74* or use the contact form.
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