An intergenerational business transfer brings its share of challenges. Finding common ground among the differences is the key to success.
The business successors have a new approach, one developed using a different set of values. There are benefits to be gained from this input provided the transition is properly prepared and there is a gradual changing of the guard.
New market challenges
The successors will have to adopt different approaches and develop specific skills to adapt to new issues:
- Rapidly changing technology;
- Need to take account of the environmental impact;
- Enhanced ethical standards and increased controls;
- Demographic changes and shifting consumer habits;
- Increasingly intense competition and need to manage growth.
Characteristics of the new generations
Young entrepreneurs do not have the same expectations as their predecessors, resulting in the need to adapt how things are done. What are some of the characteristics of the next generations?
- They expect mentoring rather than a hierarchical structure;
- They are creative and want to be in the thick of things, to interact;
- Technology and the wide range of communication channels are part of their DNA.
It’s important to call on each party’s strengths and abilities while offsetting gaps and weaknesses.
How to ensure a successful transition
A successful transition should be prepared years in advance. The main steps include:
- Developing a succession plan;
- Being attentive to the transferor’s and transferee’s expectations, concerns and motivations;
- Implementing an efficient internal communication process;
- Identifying the skills needed and providing for additional training as needed;
- Clearly defining individual roles;
- Starting the transfer process early.
You can increase your chances of success by being properly prepared and getting the support of an object expert. Don’t hesitate to contact our renowned professionals to ensure a smooth transition.
Over 90% of Quebec SMEs are family businesses. To successfully transfer the business to the next generation you need to follow a comprehensive, disciplined and well-thought-out process that involves a key human component. Take advantage of our unique, integrated business transfer approach.
Do you own an SME? One of your greatest accomplishments, ensuring your business’s continuity, cannot be taken lightly. Join the ranks of those who plan well in advance to make sure they keep their key employees. Succession is not a destination, it’s a journey that warrants the support of experienced experts. Take advantage of our approach.