Keeping the business within the family
The future and continuity of the company are essential considerations for entrepreneurs who want to take a step back in their business. Because who will take over the baton when the owner steps down? The "business exit" of the DGA can be fulfilled in various ways: The business gets internal succession, the business merges with another business,the business is sold to an external party or the business ceases to exist. In the case of family businesses, the majority shareholder may also consider keeping the company within the family. What are the considerations that major shareholders have when it comes to an exit? And why do these considerations differ per company?
Graduation research
In the fall of 2020 Max Landa, student Master Strategic Management at Tilburg University, wrote a thesis in collaboration with Florijnz on the considerations of family businesses regarding exit strategies. In his thesis he examined to what extent the type of family business leads to other considerations to say goodbye to the company.
Emotional considerations generally carry more weight
What we already knew at Florijnz was confirmed. Owners of family businesses are mainly influenced in their choices by emotional and affective considerations, often stemming from the family. In some cases, these considerations outweigh financial motives: selling the company that has been in the family for a long time, often leads to mixed feelings.
Differences per type of family business
Nevertheless, different perspectives can be seen within family firms that lead to different business exit strategies. These differences can be explained by the existence of different types of family firms. A difference can mainly be seen in the values of the company. Are these family-driven values or business-driven values? The values are often reflected in the company's missions, customer and supplier relationships and innovation. This can feel familial, but there are certainly very business-like family businesses as well.
An advisor who makes your emotional considerations a priority
At Florijnz we have experience with the different types of family businesses. This allows us to quickly recognize what an entrepreneur needs in the sales process. We find it important to make and keep the emotional considerations important. This distinguishes us from the often transaction-driven corporate finance advisor. We know that your organisation can feel like one of your children. It remains an emotional issue:selling your child. Every child is different, and so is every sales process.
