Risks & Threats

Both buyers and sellers take equal risks when it comes to succession, which can disrupt the entire process or - in the worst case - cause it to fail.

Transferors and successors also face dangers when generations change within the family.

risk of the buyer

that he does not receive all the relevant information to assess the quality of the purchase objects.
that he does not have sufficient experience in using the operational systems to ensure compliance with legal and regulatory requirements.
that he does not have sufficient experience in valuing and structuring companies to make the acquisition successful.

that he does not disclose all relevant information that is important for the buyer to make the decision to buy.
that he does not have a complete and current list of non-business assets and liabilities that are not part of the contract of sale.
that he does not have a thorough understanding of the operational system and the market to make the handover successful.

conflicts between successor and predecessor: A successor can try to overcome older structures and processes, which can lead to conflicts between him and the predecessor.
inexperience: A successor may underestimate the business succession process and not adequately prepare for the new role, which can lead to mistakes.
disagreement in the family: In some family businesses, family members can argue over who should take the lead. This can lead to factionalism, competition, and even a severing of family ties.
unconventional ways of thinking: A successor may try to use unconventional methods to move the company forward. However, this can have detrimental business implications if not well thought out.
pressure of expectation: The successor can be under tremendous pressure to live up to family expectations, which can lead to stress and uncertainty.