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Succession in a family business often presents owners with major challenges. It 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.
A partner is therefore needed who thinks long-term, strives for sustainable growth and at the same time opens up completely new opportunities for the family business through its own company network - 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, you receive an amount of money. In the second deal, you buy in: the partner who will manage your family business in the future and who will decide its future and that of your employees. Many entrepreneurs "forget" this part of succession planning. 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. In your case, the focus is on synergies.
After the takeover, central functions and processes of the group are transferred to your company, which means that decisions are made more slowly. After some time, it is completely unclear whether responsibility lies "above or below" and many good employees leave the company in frustration.
After a few years, your family business is then completely integrated into the group.
Family offices like FORUM buy companies to preserve and increase a family's wealth for the next generation. Most family offices do not sell at all. This gives your life's work a safe haven.
Family offices think long-term, so they invest to secure the future, i.e., employees, innovations and sustainability.
And they mostly operate on handshake quality - based on old merchant virtues.
Private equity funds are constructed as funds with a limited term and therefore have to turn over their investments every 3 - 5 years: They buy to sell more expensive - preferably with a lot of debt.
In this respect, your family business is prepared for sale from the moment of purchase: Cost reductions and renouncing invest with long payback are typical developments. The financiers become dominant in the corporate culture.
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 assets. 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, a family business takes over the succession of 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.
The family offices we are talking about here have a single family behind them - which is why they are also referred to as "single family offices". There are also "non-genuine family offices", e.g.
a) asset managers who manage the assets of many clients or families. In these constellations, liquidation of the investment is almost always pre-programmed in a few years.
b) Private equity funds that have families as investors. They are private equity funds - with all the characteristics we have described above. Investment bankers are in charge - like the gentleman on the right.
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"I chose FORUM as the acquirer because I liked the handshake mentality as well as 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 been loyal to me for many years.
"We deliberately chose FORUM because it allows us to work consistently 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, together and with new strength."
"I looked at several alternatives, but Forum Family Office is without doubt the best option for MedNet. On the one hand, MedNet can keep its unique spirit and character. On the other hand, MedNet gets the security and growth potential of a strong group with the possibility to think and plan for the long term. “
When selling a family business, choosing the right buyer is crucial. Private equity companies can achieve short-term gains through cost efficiency and restructuring, which can be advantageous in certain situations. Family equity , on the other hand, offers a sustainable alternative. Family offices, which 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 invest continuously 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.