A toolkit,not only the business-based,but family-based as well,typical of the family businesses problems during planning and executing succession and transfers.
The process of transfer and succession within or outside the family is an extremely crucial phase in the life of a family enterprise. According to recent studies, family business successions fail 60% of the time due to communication breakdown within the family, rather than failures due to professional errors in accounting, legal and financial advisory planning, or to tax regulations regarding business transfers. At the same time, support and consulting in business transfers focuses too much on technical and legislative issues. Business advisers and consultants need guidelines, tools, and practical means to consult family business owners and members to deal with the issue of succession, where the “family” and the “business” interests meet, and more than often, confront each other.
Some of the subjects discussed in this companion deal with the following indicative aspects:
• The identification of family business owner’s needs and goals.
• Choosing between intra- and extra-family successor(s).
• The identification and management of strengths, weaknesses, opportunities, and threats involved in succession planning.
• How to assign responsibility and authority.
• How to know when the “best solution” has been achieved.
• Soft skills required to be a successful business consultant.

Resources needed

On one hand, there is a need for trained business consultants providing inheritance and business transfer advice and a network of BCs offering such services. On the other hand, there should be family businesses in which business management is "ripe" for the use of such services. 252 680 euro by E+.

Evidence of success

A Testing of the Succession platform was done and the results of on-line testing and workshops in Bulgaria, Greece and Spain are summarized in the Intellectual product published in section Outcomes:
http://succession-project.eu/outcomes.html

Difficulties encountered

On one hand, there is a need for trained business consultants providing inheritance and business transfer advice and a network of business centres offering such services. On the other hand, there should be family businesses in which business management is "ripe" for the use of such services.

Potential for learning or transfer

The 5-lingual Guide for Succession and Family Business Transfer (GSFBT) was tested in BG,DE,GR and ES. The policymakers can learn from this practice. It was launched under Erasmus+ Programme. The aim of this GSFBT is to help family business owners, their advisors, and business support organizations to upgrade their non-technical skills. The GSFBT is being prepared to provide consultants with specific tools for consulting and guidance. In case of Bulgaria-for the Implementation and improving of the National Strategy for SMEs 14-20,priority areas: Encouraging entrepreneurial activity; providing appropriate regulatory and administrative framework for SMEs by applying the "Think Small First"; Improving conditions for SMEs to access foreign markets; For Entrepreneurship-Transfer of business: Measures aimed at the smooth conduct of the Transfer of business: public campaigns,mentoring schemes of the process,creating a fund to BG Development Bank to finance the process of Transfer of business.

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Main institution
Yambol Chamber of Commerce and Industry
Location
Югоизточен, Bulgaria (България)
Start Date
January 2015
End Date
January 2017

Contact

Velizar Petrov Please login to contact the author.

Good Practices being followed by

John Wideman

Kainuun Etu