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Family firm report

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Vlerick_Alumni
Vlerick_Alumni

On June 25th, Vlerick MFM Alumni organized an event focusing on succession and transfer of family businesses. Over 80 alumni attended to learn about the different aspects of transferring a family-owned company. The key message was that succession or sale of a family business requires careful preparation of both legal/financial and emotional/relational aspects. Speakers discussed the implications of inheritance law, characteristics of family firms and role of external investors, preventing family conflicts during succession, and elements essential for continuity of a family business such as long-term vision and good governance. Questions from attendees focused on potential tensions between investors and families during sale and governance to preserve long-term value creation and family well-being.

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Event report Succession of the Family Firm: Sell-it-on, Pass-it-on or have it managed for you? 25 June 2012, at ING Brussels On June 25th Vlerick MFM Alumni, in cooperation with ING, organized the third family firm event. This year’s edition was focusing on the succession and the transfer of family businesses. A subject that attracted a lot of interest from the Vlerick Alumni Community; more than 80 alumni were eager to know more about the different aspects of transferring a family-owned company. The key message of the evening was that the transfer of a family business, whether it is a succession or a sale, should be prepared carefully. Not only legal and financial aspects matter in this context, also the importance of emotional and relational aspects should not be underestimated. Especially the latter is often neglected by people with a financial background. The evening kicked off with Jean-Philippe Bonte, head of wealth analysis & planning at ING Belgium, who guided the audience through the civil and legal aspects of succession. He explained the implications of the inheritance law, the gift of shares of the family business and a sale of the company to an external investor. Walter Beyen, partner at Vectis Participaties elaborated on the characteristics of family firms and the role of the external investor. His fund owns and manages a number of small and medium sized family businesses. An investment strategy that is popular among these companies is the owner buy- out. This means that the founder/family of the business re-invests a part of the proceeds from the sale in the company. This approach provides many benefits for the founder such as the opportunity to diversify wealth, to empower key management and to benefit from the future growth gained through the strategic advice from the financial investor. The next topic, conflict prevention and mediation, was presented by Hanne Van Waeyenberge, expert in family business mediation. For the founding family the sale or succession of the firm is a long psychological process in which a lot of emotional and relational aspects should be considered. She started her presentation with a story of a man and his daughter that did not agree on the sale of the company. Through the involvement of a mediator, they realised that the discussions were not about the sale, but about different visions and aspirations. Within succession of family businesses, the psychological well-being of the family is definitely not only driven by cash. Finally, Karel Boone, former CEO and chairman of Lotus Bakeries and many other family businesses, shared his vision on the successful succession of a family business. During his career, he has always been a strong believer of the fact that a long term vision and strategy, a good functioning board and a good functioning management are essential elements for the continuity of a family business. Miguel Meuleman, assistant professor at Vlerick Leuven Gent Management School, moderated the evening and addressed several statements his team encountered in the field of the family firms. The questions raised during the Q&A session focused on potential tensions between investors and the selling family and executive and non-executive family owners and on governance to preserve long term value creation as well as well-being. Many unanswered topics were ground for further discussions during the reception offered by ING. By Katrien Meeusen (MFM 2007)

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Family firm report

  • 1. Event report Succession of the Family Firm: Sell-it-on, Pass-it-on or have it managed for you? 25 June 2012, at ING Brussels On June 25th Vlerick MFM Alumni, in cooperation with ING, organized the third family firm event. This year’s edition was focusing on the succession and the transfer of family businesses. A subject that attracted a lot of interest from the Vlerick Alumni Community; more than 80 alumni were eager to know more about the different aspects of transferring a family-owned company. The key message of the evening was that the transfer of a family business, whether it is a succession or a sale, should be prepared carefully. Not only legal and financial aspects matter in this context, also the importance of emotional and relational aspects should not be underestimated. Especially the latter is often neglected by people with a financial background. The evening kicked off with Jean-Philippe Bonte, head of wealth analysis & planning at ING Belgium, who guided the audience through the civil and legal aspects of succession. He explained the implications of the inheritance law, the gift of shares of the family business and a sale of the company to an external investor. Walter Beyen, partner at Vectis Participaties elaborated on the characteristics of family firms and the role of the external investor. His fund owns and manages a number of small and medium sized family businesses. An investment strategy that is popular among these companies is the owner buy- out. This means that the founder/family of the business re-invests a part of the proceeds from the sale in the company. This approach provides many benefits for the founder such as the opportunity to diversify wealth, to empower key management and to benefit from the future growth gained through the strategic advice from the financial investor. The next topic, conflict prevention and mediation, was presented by Hanne Van Waeyenberge, expert in family business mediation. For the founding family the sale or succession of the firm is a long psychological process in which a lot of emotional and relational aspects should be considered. She started her presentation with a story of a man and his daughter that did not agree on the sale of the company. Through the involvement of a mediator, they realised that the discussions were not about the sale, but about different visions and aspirations. Within succession of family businesses, the psychological well-being of the family is definitely not only driven by cash. Finally, Karel Boone, former CEO and chairman of Lotus Bakeries and many other family businesses, shared his vision on the successful succession of a family business. During his career, he has always been a strong believer of the fact that a long term vision and strategy, a good functioning board and a good functioning management are essential elements for the continuity of a family business. Miguel Meuleman, assistant professor at Vlerick Leuven Gent Management School, moderated the evening and addressed several statements his team encountered in the field of the family firms. The questions raised during the Q&A session focused on potential tensions between investors and the selling family and executive and non-executive family owners and on governance to preserve long term value creation as well as well-being. Many unanswered topics were ground for further discussions during the reception offered by ING. By Katrien Meeusen (MFM 2007)