The first rule for a business handover: start early.
After years of devoting yourself to your business, there comes the moment when you step back. How can you handle this process efficiently and effectively? Kris Dewinter, Head of Corporate Finance Belgium, and Dieter Verbeek, Executive Director Wealth Management Flanders, share their insights for a successful business handover. Whether you wish to keep your business in the family, or are thinking about external investors, Kris and Dieter emphasise why timely preparation and clear agreements are essential during this complex process.
Preparation and guidance: the key to success
A business handover requires careful planning. Kris Dewinter emphasises that it is not just the technical aspects, such as having the correct figures and the tax processing, that are important. You also need to be mentally prepared to hand over your “baby” to the next generation or an external party. “Start early and seek professional guidance from day one,” he advises.
ABN AMRO will support you throughout the entire transfer process. Dieter Verbeek explains that the banker's role has evolved: “Where previously we offered only strategic wealth planning, we now also provide advice on mergers and acquisitions.”
Clear agreements are the keystones for a strong foundation
Verbeek points out the importance of a family charter, a document that sets out the rules for interactions between family members and the company. It includes criteria for active participation within the company and the allocation of roles to family members. This prevents feelings of unfairness during a family business handover.
For a transfer within the family, it is important that potential successors should first gain some external experience. Dewinter recommends that children should first develop a broader perspective and framework of reference before joining the family business.
External management and investments
If there is not any successor within the family, external investors or buyers may be attracted. Dewinter emphasises the importance of guidance well in advance in order to prepare for the sale properly and achieve the best outcome. Potential investors could come from the private equity sector or be industry investors looking to expand your business.
When selling to a financial investor, it makes sense to introduce an external management gradually. This increases the attractiveness of your business as it then depends less on you and operates more autonomously. Of course, you can remain involved through the Board of Directors.
Would you like to know more about how ABN AMRO MeesPierson can support you in your business handover? Find out more at ABN AMRO Business Transfers ABN AMRO Business Transfers.
