Corporate succession: How to avoid psychological pitfalls when handing over the company

Humans are not machines – it is essential to take into account the soft factors

When it comes to corporate succession, data and facts are the first priority. But the psychological and social factors in the transaction process should not be underestimated so that the handover can be successful in the long term.

The network of relationships surrounding the succession is often very complex. In addition to the entrepreneur and immediate family, the acting or affected persons include potential successors, employees, external partners such as supplying companies, the clientele or the house bank. The impact a corporate transaction has on these people is often underestimated and can, under certain circumstances, jeopardize the success of the handover.

You should definitely keep an eye on these three relationship focal points

In the corporate transaction for the succession, there are three particularly important points of contact between the individual groups of people. If you focus your attention on this together with aumento value and actively and carefully shape the relationships, you have optimal prospects for a harmonious transition. The three main areas are:

  • Submitter and follower
  • Handler and staff
  • Subsequent and external reference groups such as suppliers and customer base

Submitter and follower: Acting on an equal footing and with respect

Companies are usually significantly shaped by the personality of the entrepreneur. It is not easy to let go of your life’s work and give it to someone else’s hands. Perhaps the following will change things that have previously seemed meaningful and for which the company has long fought. Giving up the previous leadership role can be unfamiliar and lead to uncertainty, because many entrepreneurs define themselves to a large extent by their professional successes. The parallel management of the company during the handover can also be challenging: While one person has to let go, the other should be able to gain a foothold and build security. The following must have the opportunity to develop their own profile in the company. With the aumento value system, we offer you various options to design this complex event in such a way that it corresponds as closely as possible to your personality and that of the following. We moderate points of friction before they can lead to crises.

Handover and staff: create transparency and provide security

Company succession also affects the workforce and can lead to worries and fears for the future among people. Transparent communication and clear perspectives for the future are therefore important. The workforce wants to know what to prepare for and has many questions: Will the boss leave the company entirely and if so, when? How will the company be continued and by whom? Will things change immediately? Are there any threats of restructuring or layoffs? Is the company doing well financially or is there cause for concern? If there are no clear answers to these questions, employees may react by resigning and looking for another employer. There is a threat here of skilled workers and know-how that is critical to success. In smaller companies in particular, personal contact between the following and the workforce is also important and should be established at an early stage. Our aumento value team of experts accompanies companies through the handover and ensures transparency and successful communication within the company.

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Subsequent and external reference groups: inform and build trust

In addition to maintaining contact with the workforce, it is also important to maintain relationships with the company’s external reference groups. Timely information and personal discussions create trust and lay the foundation for further cooperation with suppliers, banks or important customers. With the aumento value system you create continuity and perspectives for all external reference groups and thus a successful basis for the future of the company.

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