In many family businesses, the important question of succession comes up at some point. This phase is often fraught with uncertainty.
It is not always easy to find a suitable successor who shares the vision and values of the business and can continue it successfully. In addition, handing over the family business to the next generation can lead to conflicts within the family. This is where an active investor can come into play as a potential solution.
The Starting Point
A medium-sized company from the industrial sector, which had built up a solid customer base and a stable market position over decades, was facing a caesura. The owner, now at retirement age, was faced with the task of handing over the company, his life's work, into trustworthy hands. However, the son who was supposed to be the successor had other professional ideas and wanted to start his own business in another sector.
The Solution
Against this background, the owner started seeking alternatives. After intensive discussions and consultations, he decided on an external route and finally found an active investor. This investor not only had extensive experience in the industry, but also showed a strong interest in the further development of the company. He invested not only capital, but also his time, knowledge, and networks to lead the company on a sustainable growth path.
The Process
The cooperation began with a thorough analysis of the company, its structures and processes. Together with the existing management team, clear goals were defined and a comprehensive business plan was developed. The investor brought in new, innovative ideas—from the development of new products to the digitalisation of production. He also supported the optimisation of the company structures and the development of new markets.
The Success
The investor's commitment enabled the company to be comprehensively modernised and restructured. Production was made more efficient and the product portfolio was expanded to make it fit for the future. This enabled the company to strengthen its market position, win new customers and significantly increase its turnover. The owner was reassured and happy to have handed over his company into committed and competent hands. The investment also paid off for the investor—he was able to achieve an attractive return.
The Conclusion
This case study illustrates that an active investor can be an effective and sustainable solution to succession issues in family businesses. Through targeted investments, professional expertise and committed involvement, he can help to ensure that the business not only continues, but also prospers. Thus, a win-win situation can be created for all parties involved—a successful transition that honours the life's work of the previous owner while offering new opportunities for growth and innovation.
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