THE IMPORTANCE OF TRANSMISSION …
The transmission of first-generation business remains a major issue today, at the individual, family, collective and societal level.
Every business – from the smallest to the most accomplished middle sized organizations – could be in danger when its leaders reach the age of transmission. It is not only about their work and their heritage, but also the employment and development in the territory.
In fact, the risk is great that smaller companies do not easily find a buyer. They simply disappear, with the jobs they have created*. The larger ones, on the other hand, would be bought by competitors, large groups or investment funds, knowing that this will not guarantee the respect of the original identity nor a future possible project.
* ABOUT 60 000 COMPANIES CEASED THEIR ACTIVITIES PER YEAR, 30,000 CAN’T FIND BUYERS, DESTROYING AT LEAST 37 000 JOBS (LE FIGARO ECONOMIE, 16 MARCH 2018).
BETTER BE PREPARED FOR THE TRANSMISSION …
For the leader, often alone, one way to ensure the continuity and the actual sustainability of its business is to organize itself a controlled recovery *
He can transmit to a buyer(s) who shares his ambitions and values, or its employees, but it must be able to finance the operation, especially if the company has already reached a certain maturity.
He can prepare and implement a real family transmission.
He may otherwise consider the sustainability of its organization in a corporate foundation, the Scandinavian model, in the spirit of the law PACTE proposed by the Sénard-Notat report now approved.
But in any case, he will need time to anticipate: reflect, identify, move, talk, face, implement and prepare.
* TWO THIRD OF TRANSMISSION EFFORTS FAIL FOR LACK OF PREPARATION. BPI SOURCE
SUPPORTING BUSINESS LEADERS … UPSTREAM!
Getting out of the transmission taboo, denial of succession.
The transmission is a complex and multifactorial subject, increased with the size of the company where there is often an amalgam/confusion between transmission and transfer.
These are neither tax obstacles nor legal & financial blocking transmission projects today, but more often the loneliness of the leader dealing with this critical issue: Lack of sparring partner, real exchanges, examples, best practices and presentation of all the options on the subject.
It is going to be through a pragmatic approach and with mentors having already lived a transmission, that we can appropriately support leaders.
Transmission should become a real strategic consideration for leaders, the same level of importance and attention that we pay on technological evolution as well as sustainable development: It should be a true managerial action to take.