Succession in the family business with forum family equity

The transfer of family businesses involves the transfer of ownership and management to the next generation for personal reasons. If you are an entrepreneur thinking about selling your life's work, you should first clarify what is important to you. A family office is the right type of buyer if the continued existence of the company, the safeguarding of employees and customers and a fair price are important to you.

A long-term family office like FORUM Family Equity offers a sustainable solution. Thanks to their long-term perspective and understanding of family values, they can ensure the continued existence and further development of the company. FORUM Family Equity supports family businesses not only financially, but also strategically to ensure a successful handover to the next generation.

Succession = Two shops

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.

Three reasons why your family business is in the best hands with FORUM

Bullet point to show aspects of a career at FORUM in Value Investing and Private Equity jobs.
Principles: permanent - decentralized - entrepreneurial: your family business retains its identity
Bullet point to show aspects of a career at FORUM in Value Investing and Private Equity jobs.
Values: we are a family business ourselves: Your family business remains a family business
Bullet point to show aspects of a career at FORUM in Value Investing and Private Equity jobs.
Sector expertise: we are one of the largest and most experienced investors in Germany in each ofour focus sectors : software, water & fluid management and healthcare. In addition, we have experience with listed companies in this sector - we learn from the best in the industry.

Three types of buyers from medium-sized companies

Image of high-rise buildings to illustrate Group Office

Sale to Group

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.

Image of family office family equity to show friendliness in company purchase


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.

A green grasshopper sits in the middle of the picture on a wheat bud. The locust here symbolizes the exploitation of the company by the classic private equity funds.

Sale to private equity

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 and non-genuine family offices

The family offices we are talking about here have a single family in the background - that is why they are also referred to as "single family offices". In addition, there are "non-genuine family offices", which are, for example,

a) asset managers who manage the assets of many clients or families. In these constellations, liquidation of the investment is almost always preprogrammed 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 - like the gentleman on the right - call the shots.

Letter from warren Buffet to UNternhemer
Hedge fund manager as an example of a "fake" private equity family office

COMMENTS from previous sellers

Edgar Schall from Edgar Schall Group

"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.

Edgar Schall / Founder of Edgar Schall GmbH
Ralf Pogoda on the takeover of Pulsation

"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."

Ralf Pogoda / FOUNDER OF Pulsation
David Thaler from Mednet GmbH

"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. “


Family equity as a sustainable alternative

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, while family equity offers a sustainable alternative. Family offices, which manage the capital of wealthy families, 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.

FAQs Family business succession and family equity

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