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succession planning family business
Succession in a family business? FORUM Family Office is your partner for a secure future. We guarantee a "Good Home" for your life's work & a fair price.
Succession planning in a family business often presents owners with major challenges. A succession plan involves not only the transfer of ownership and management responsibility, but also concern for the future of the company. After all, the life's work should be continued and grow as well as possible.
In order to preserve the life's work and allow it to grow sustainably, it makes sense to work with a family equity partner who not only thinks long-term, but also actively contributes capital, expertise and a strong company network through family equity. Such a partner opens up completely new perspectives and opportunities for family businesses - a partner like FORUM Family Office.
A professional succession plan consists of two transactions: In the first - and superficial - transaction, you sell a stream of future cash flows to a buyer at a valuation factor, in return for which you receive a sum of money. In the second transaction, you buy in: the partner who will look after your family business in the future and who will decide on its future and that of your employees. Many entrepreneurs "forget" this part of the succession plan. FORUM is your best partner if you are looking for a balanced package: the best possible "good home" for your family business and a fair purchase price.
There are basically three possible types of buyer for an external succession plan. The choice here is crucial for the future of the family business, because anyone who wants the company to continue in a long-term, sustainable manner needs a partner who pursues the same goals. The types of buyer differ fundamentally here.
Groups buy in order to integrate. They focus on synergies.
After the takeover, central functions and processes of the group are transferred to your family business, which means that decisions are made more slowly. After some time, it is completely unclear whether responsibility lies "at the top or at the bottom" and many good employees leave the company in frustration.
After a few years, your family business is then fully integrated into the group.
Family offices like FORUM buy companies in order to preserve and increase a family's wealth for the next generation. Most family offices do not sell at all. This gives your family business a safe haven.
Family offices think long-term, which is why they invest in securing the future, i.e. employees, innovation and sustainability. This makes them the ideal successors for family businesses.
In addition, they usually operate on the basis of handshake quality - based on old business virtues.
Private equity funds are designed as funds with a limited term and therefore have to turn over their investments every 3-5 years: they buy to sell at a higher price - preferably with a lot of debt.
In this respect, your family business is prepared for sale from the time of purchase: Cost-cutting and foregoing investment with a long payback are typical developments. The financiers become dominant in the corporate culture.
Family Equity is the family business of the financial industry: wealthy families invest long-term and sustainably in companies that match their values. In contrast to private equity, which often aims for short-term profits and rapid resale, family equity focuses on stability across generations, sustainable growth and security. These investments are usually managed by family offices, which responsibly preserve entrepreneurial traditions. Family Equity stands in stark contrast to the private equity known from the media, which does not stand for the long-term preservation of companies.
Genuine family offices are the family businesses of the financial sector. They think and act like traditional family businesses, as their primary goal is the long-term and sustainable preservation of family wealth. This is why family equity, in contrast to short-term private equity, offers the ideal opportunity for succession in a family business. Not only can the culture and character of a family business be preserved, but its long-term survival can also be ensured. Ultimately, with family equity, a family business succeeds a family business.
In addition, family offices generally buy companies of the same type. The acquired family business is therefore incorporated into a network - one could say an extended family - consisting of similarly operating companies. This enables mutual support, cooperation and knowledge transfer. In addition, a family office operating in this way has already gained experience with similar companies and can therefore develop a succession solution that is specifically tailored to the needs of the respective company and at the same time promotes long-term growth.
As a genuine family office, the Forum Group brings together bundled know-how and decades of experience in the acquisition and successful continuation of companies. Our long-term approach to succession planning for your family business ensures that we not only accompany the smooth transition to the next generation, but also preserve the company's success and values in the long term.
We draw on a strong network of professionals and industry experts to develop customized solutions. On the Holdings page you can find out more about our active engagements and strategies. Together, we develop concepts that support succession planning for family businesses and successor family businesses alike. We also provide practical support after the takeover.
The Family Offices we are discussing here have a single family in the background - that's why they are also called "Single Family Offices". In addition, there are "pseudo family offices", e.g.
a) Asset managers who manage the assets of many clients or families. In these constellations, a liquidation of the investment in a few years is almost always pre-programmed.
b) Private equity funds that have families as investors. They are private equity funds - with all the characteristics we have described above. Investment bankers call the shots - like the gentleman on the right.
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"I chose FORUM as the acquirer because I liked the handshake mentality and the very fast, binding and reliable way of working of Dr. Wittek. I expect FORUM to continue my life's work profitably together with my employees, who have remained loyal to me for many years."
"We deliberately chose FORUM because it allows us to constantly work on our products and further expand our growth. Reliability and continuity have the highest priority. By joining the group, we will achieve our ambitious goals - together, jointly and with new strength."
"I looked at several alternatives, but Forum Family Office is without a doubt the best option for MedNet. On the one hand, MedNet can preserve its unique spirit and character. On the other hand, MedNet gets the security and growth potential of a strong group with the ability to think and plan long-term. "
When selling a family business, choosing the right buyer is crucial. Private equity firms can achieve short-term profits through cost efficiency and restructuring, which can be advantageous in certain situations. Family Equity, on the other hand, offers a sustainable alternative. Family offices that manage the capital of a wealthy family (hence Family Equity) have a strong interest in the long-term development and stability of the company. They usually do not follow a strict exit plan and continuously invest in innovation and employee development. This long-term orientation promotes the corporate culture and ensures the sustainable competitiveness of the company. Family Equity supports the long-term goals and values of family businesses and ensures a harmonious and successful future.