Transfer of business blueprint NEXT Strategy/ plan
Description: Transfer of business blueprint NEXT Strategy plan Family firms represent relatively stable systems so long as the founding entrepreneur is in place. They subsequently become destabilized as a function of such triggering events as the
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slide1. Transfer of business blueprint NEXT<br>
slide2. Strategy/ plan Family firms represent relatively stable systems so long as the founding entrepreneur is in place. They subsequently become destabilized as a function of such “triggering events” as the decision to bring a family member into a senior position, the founder’s decision to disengage or decision about firms’ selling (Morris, Williams, Nel, 1996). Successful adaptation to the new situation is influenced by the conditions within the firm (e.g. state of maturity, economic health) and family dynamics (e.g. closeness of family, interdependencies among family members, sibling rivalries, financial condition of family members) (Beckhard, Dyer 1983), as well as the situation in the firm’s environment.
Such critical changes in the firm, eventually leading to the ownership and authority transfer, need to be overthought and planned in details (Family Business Survey, 2016). NEXT BACK<br>
slide3. Strategy/ plan Process of planning the business transfer should be preceded by answering the questions from the list below:
is there any family member who wants and can (has the knowledge and skills) takeover the firm?
what skills do the new generation need to succeed?
how generation change of firm’s ownership/authority will influence the relationships among family members?
what are different models of business transfer, beside next generation’s succession? what are pros/cons each of them?
is the firm prepared for the changes? is it structured and functioning on high level of professionalism? (that is fundamental for transferring the authority, know-how and values)
what is the time horizon? what is the deadline the founding entrepreneur wants to complete the process of business transfer? what are his/her plans afterwards?
are there any partners that could support the process? NEXT BACK<br>
slide4. The strategy of business transfer consists elements as follow: analysis, aims, plan of action NEXT BACK elaborated by Anita Richert-Kaźmierska<br>
slide5. Successor/ donator…? It is very important to aswer the question:
How the business transfer might be carried out? Possible model of business transfer:
Model 1 – family transfer
Model 2 – one or more external entrepreneurs
Model 3 – takeover by company executives
Model 4 – takeover by a workers´ cooperative etc.
Model 5 – takeover by another company
Model 6 – takeover in form of a mixed scheme BACK More about model 1 More about model 2 More about model 3 More about model 4 More about model 5 More about model 6 SUPPORT How to finance a business transfer?<br>
slide6. Model 1business takeover within the family Steps to a successful business transfer:
Step 1 - Align Family Goals
A successful transfer involves understanding each generation’s goals.
Step 2 - Evaluate the Senior Generation’s Liquidity Needs
An evaluation of the senior generation’s future income needs should be conducted prior to structuring the transition
Step 3 - Analyze the Company’s Finances
The business’s historical financial performance provides insight into what the company can handle in terms of a transaction as well as a range of values for the parties to consider a transaction.
Step 4 - Evaluate Transfer Methods
Here we evaluate which path(s) to pursue in the ownership transition.
Step 5 - Evaluate and Analyze the Tax Structure
The transfer methods will dictate the tax consequences to the senior generation, the next generation, and the company all need to be evaluated.
Step 6 - Develop a Buy-Sell Agreement
In situations where the business will transfer to more than one owner, developing a buy-sell agreement is of great importance. BACK CASE<br>
slide7. Model 2 – one or more external entrepreneurs Steps to a successful business transfer:
Step 1- Discuss the terms of the transfer of ownership
Clarify the expectations on both sides: the external entrepreneur and the owner.
Step 2 - Consulting experts
Do financial diagnostic and establishing the company’s value, do review tax strategies.
Step 3 - Choosing from the available solutions
Do review of various scenarios with the team of experts and make a choice, do a financing negotiation
Step 4 - Approval and implementation
make diligence review, put up required structures in place, finalize financing. BACK CASE WHO CAN HELP? How to finance a business transfer?<br>
slide8. Model 3 – takeover by company executives/ management team Steps to a successful business transfer:
Step 1 - Clarify the expectations on both sides
Make sure that everyone’s intentions are clearly understood.
Step 2 - Draw up an action plan for the company
A strategic action plan will allow you to take stock of the current position of the company, to identify corrective measures to apply immediately, to outline the key elements of company’s future orientation and to determine what action to take to achieve fixed objectives.
Step 3 - Evaluate the abilities of the company executives /management team
The strategic planning exercise will allow you, among other things, to determine the human resource needs of management.
Step 4 - Establish a training plan for the successors
A training plan in due form for each member of the management team is a very useful undertaking.
Step 6 - Be aware of the issues related to the transfer of management
You must also consider the consequences of failure in your attempt to transfer the company to management. You should not forget the members of your family.
Step 7 - Do not hesitate to call on experts who can provide assistance
Becoming involved in the process of a transfer to management is demanding. Think about a consultant specialized in strategic planning or the help of a consultant specialized in human resource management BACK CASE WHO CAN HELP? How to finance a business transfer?<br>
slide9. Model 4 – takeover by a workers´ cooperative Steps to a successful business transfer:
Step 1 - Deciding to move forward
Research and reading, worker ownership succession options workshop (for owner and their leadership team), initial owner conversation with employees
Step 2 - Getting ready: employee training and business valuation
Financial training for employees, business and industry training, cooperative trainings for employees, business valuation process, business valuation or owner’s price, determine financing options, review and revise current business plan.
Step 3 - Defining structures
Document current management plan, draft cooperative by-laws, define post-transition management
Step 4 - Finalize the transition
Transfer business ownership, negotiate final price, seek financing, future members approve final price and financing, structure, complete the transaction, transfer governance and elect new board, transfer management as necessary.
Step 5 - Follow through and monitoring
Possible ongoing training with current employees. BACK CASE WHO CAN HELP? How to finance a business transfer?<br>
slide10. Model 5 – takeover by another company Steps to a successful business transfer:
Step 1 - Define the Personal Goals of the Owner
The owner must therefore balance his financial and interpersonal goals in order to find the best possible exit strategy
Step 2 - Understand that a Range of Values Exist for the Business
The value of a privately-held business depends largely upon who buys it. ‘External transfers’ to other industry players, financial groups, or by initial public offering, command more liquidity ‘up front’ while the owner relinquishes more control over the company
Step 3 - Examine the Options Available for the Transfer of Shares
There are three primary purchasers of privately-held business stock (or assets):
Parties to the transaction and types of transactions available (samples; not a complete list)
Financial Groups - Recapitalization
Industry Buyers - Acquisition (at Synergy Value)
Initial Public Offerings - IPO (at Public Market Value)
Step 4 - Provide Full Financial Disclosure to the Buyer
Assembling financial records and presenting them to a buyer is very time consuming, not a lot of fun, a very personal survey of how the business is run.
Step 5 - Assemble Your Advisory Team – Don’t Go It Alone
Invest the time and money in the right team of advisors; a successful business exit is more than worth. BACK CASE WHO CAN HELP? How to finance a business transfer?<br>
slide11. Model 6 – takeover in form of a mixed scheme Steps to a successful business transfer:
Step 1 - Retain key employees.
Step 2 - Minimize business interruption and disruption.
Step 3 - Maximize enterprise sale value.
Step 4 - Minimize tax obligations.
Step 5 - Include contingency plans for unexpected life circumstances and business changes.
Step 6 - Ensure the business operates as if a sale will not occur. BACK CASE WHO CAN HELP? How to finance a business transfer?<br>
slide12. Success story from Russia Business transfer cases BACK Success story from Finland Success story from Latvia Success story from Russia Failure story from Russia Success story from Finland Success story from Russia Success story from Russia Success story from Finland Success story from Lithuania Success story from Sweden Failure story from Russia Success story from Poland Failure story from Poland Model 1 Model 2 Model 3 Model 4 Model 5 Model 6 Success story from Estonia Success story from Denmark<br>
slide13. Who can help? In every following countries are different organisations who suport the owner in the succession process.
Denmark
Germany
Estonia
Finland
Latvia
Lithuania
Poland
Sweden
Russia BACK More about support organizations More about support organizations More about support organizations More about support organizations More about support organizations More about support organizations More about support organizations More about support organizations More about support organizations<br>
slide14. Who can help in Denmark The Centre for Owner-managed Business(https://www.cbs.dk/en/research/departments-and-centres/department-of-accounting/centre-owner-managed-businesses) offers a training, an advice and a help in business succession. They have four projects (conferences and workshops) related to: digital training of future leaders, psychological aspects of owner-management and the transfer of ownership process, the importance of the board and management in the transfer of ownerships and the growth through business transfer in Danish owner-managed businesses
" Ejerstrategi-kortet http://www.ejerstrategi-kortet.dk/ - the ownership strategy map, which is a planning tool to help owner managers start planning the future ownership and leadership of their business. The owner strategy map provides specific guidelines on how to incorporate future management and ownership in businesses and 1,300 owner managers and advisors have already used the too.
http://www.match-online.dk - platform where you can seek the advice in connection with business transfer:
Business Aabenraa https://businessaabenraa.com/1-1-sparring/# offers entrepreneurs a support related to review of concept, business plan, budgets, preparation of roadmap, contact with relevant advisors e. g. accounting, law, marketing etc.
Væksthus Syddanmark https://startvaekst.virk.dk/ offers assistance to entrepreneurs in newly started companies, as well as Business Fredericia https://businessfredericia.dk/ivaerksaettersparring/ BACK<br>
slide15. Who can help in germany Nexxt-change
Nexxt-change is an Internet Platform of the Federal Ministry of Economics and Energy, the KfW Bankengruppe, the German Chamber of Commerce and Industry, the Central Association of German Crafts, the Federation of German People's Banks and Raiffeisenbanken and the German Savings Bank and Giroverban. The aim of platform is to bring together entrepreneurs and start-ups interested in succession. Entrepreneurs as well as start-ups and founders can browse the database with the company sales and the firm buying offers or place the advertisement themselves. https://www.nexxt-change.org
Nachfolg-o-mat
The nachfolg-o-mat (“success-o-meter”) is an online tool that gives a general overview about business succession in Germany. Each user can answer different questions and will then receive an individual analysis about their succession knowledge. In addition to that, the users can see in which areas they still need to acquire more information or knowledge and which contacts might be useful for that. http://www.nachfolg-o-mat.org/
The National Agency for Women Start-ups Activities and Services (bga) offers the political, business, academic and public sectors a platform for information and services related to women entrepreneurship in all areas and phases of company foundation, consolidation and business succession. (www.existenzgruenderinnen.de) BACK<br>
slide16. Who can help in estonia E&Y, Delloitte, PWC,
In case of smaller companies, the local companies come into play, such as INVESTMENT AGENCY (see: www.agency.ee)
Estonian Chamber of Commerce and Industry BACK<br>
slide17. Who can help in finland There are numerous organizations involved in business transfer issues, i.e. ministries, tax administration, enterprise associations, enterprise agencies, lawyers, banks, insurance companies, chambers, private consultants, cities, municipalities, etc.
Some examples are given here (see also http://www.theseus.fi/bitstream/handle/10024/97257/B108.pdf;sequence=1):
National: The Federation of Finnish Enterprises (https://www.yrittajat.fi/en) - support for members: membership services, see https://www.yrittajat.fi/en/about-federation-finnish-enterprises/membership-services-526297; Enterprise marketplace (Business Exchange, Yrityspörssi) for buying and selling enterprises https://www.yritysporssi.fi/
National: Enterprise Finland (Ministry of Economic Affairs and Employment) https://yrityssuomi.fi/en/home (new address in January 2018 https://www.suomi.fi/company) - see services https://www.suomi.fi/company/changes-and-crisis-situations/change-of-ownership-and-company-acquisitions
National: Perheyritysten Liitto (http://www.perheyritys.fi/) - coaching for family successors (http://www.perheyritys.fi/palvelut/next/)
National: Finnish Business Transfer Society (https://www.omistajanvaihdosseura.fi/): advice and councelling for business transfers, business value determination calculator for basic value evaluations, links to business marker places (https://www.omistajanvaihdosseura.fi/16)
National: Centre for Economic Development, Transport and the Environment
Regional (member of the Federation of Finnish Enterprises) Satakunnan Yrittäjät (https://www.yrittajat.fi/satakunnan-yrittajat) - services only in Finnish (https://www.yrittajat.fi/satakunnan-yrittajat/a/satakunnan-yrittajat/satakunnan-yrittajat/sukupolven-ja-omistajanvaihdos-284635), but shortly advice on selling and buying, advice on procedures for enterprise ownership change, advice on taxation and value determination, further contacts to other expert services; Regional enterprise marketplace https://www.satakunnanyritysporssi.fi/ for selling and buying enterprises
Regional: Prizztech Ltd (http://www.prizz.fi/en) - services include (http://www.prizz.fi/en/become-entrepreneur#.Wk3b2_ll82w): counselling those who are planning to continue an existing business, directing to experts, making an action plan, consulting a tax adviser
Private franchising chain: Finnish Company Acquisition Ltd. (https://www.yrityskaupat.net/) - services: https://www.yrityskaupat.net/palvelut.php#11 BACK<br>
slide18. Who can help in Latvia BACK Adizes Institute in Latvia (https://adizes.lv/adizes-services/) – They are consulting companies in business transfer processes, mainly those processes which concern employees and people management, not financial.
KPMG Latvia (https://home.kpmg/lv/en/home.html) – They are mainly dealing with business transfer processes which are related to finances (company value evaluation etc.).
PwC Latvia (https://www.pwc.com/lv/en.html) – They could help in legal aspects of the business transfers.<br>
slide19. Who can help in lithuania Enterprise Lithuania ( https://www.verslilietuva.lt) is a non-profit agency under Ministry of Economy and Innovation established to promote entrepreneurship, support business development and business transfer. Agency supports the establishment and development of competitive businesses in the country and fosters the country’s exports by facilitating cooperation with partners’ networks and providing quality training, consultancy, market analysis, and business-partner search services for businesses. They are a recognized facilitator of startup community and ecosystem in Lithuania.
Enterprise Lithuania is a one-stop-shop for entrepreneurs across EU: They provide information on regulations, requirements, licenses as well as quality support to establish business in Lithuania. They are a recognized partner to numerous foreign business associations, chambers and governmental institutions as the first choice in Lithuania to start business, connect with potential partners, identify and explore business opportunities.
They maintain The Lithuanian Exporters Database which is a free online platform tailored for companies that are looking for a reliable business partner in Lithuania. BACK<br>
slide20. Who can help in poland Looking for investor/ buyer Mentoring and training - Business and professional associations BACK<br>
slide21. Who can help in poland the basic browser for PE/VC funds in Poland
http://www.psik.org.pl/new/znajdz_fundusz2.php
portal which facilitate search of suitable angel investor - private investor
http://www.pi.gov.pl/parp/data/pdf_071112/index.html Matching platforms for business transfer in Poland:
szukam-inwestora.com
sprzedambiznes.pl
biznes2biznes.com
investing.pl
bizvendo.pl
startinvest.pl
intereso.pl
biznesoferty.pl
biznesmakler.com
sprzedajkupfirme.pl
inwestbiznes.pl BACK NEXT<br>
slide22. Who can help in poland Chambers of Commerce and Industry National Chamber of Commerce in Poland
It is the largest independent business organization and represents the largest number of entrepreneurs, combining more than 150 business organizations e.g. 65 Chambers industry, 59 Chambers regional, 18 Chambers bilateral, 4 other organizations (associations, employers' associations and foundations). National Chamber of Commerce in Poland and their members are partners in many projects related to the support of SME's enterprises (also in mentoring/training in business transfer process). The basic a search engine for Chamber of Commerce/Industry or Regional chambers in Poland can be found at: https://kig.pl/o-kig/czlonkostwo-w-kig/czlonkowie-kig/
This organization helps businesses innovate and grow on an international scale.
for Central Poland: www.een.org.pl
for East Poland: www.een-polskawschodnia.pl
for West Poland: www.westpoland.pl
for South Poland: www.een.net.pl Agency is involved in the implementation of national and international programs financed from the EU structural funds, state budget and multiannual programs of the European Commission; it paids a special attention on a succession in family business
www.parp.gov.pl
A public organization operating for the benefit of family businesses
www.firmyrodzinne.pl
The Family Enterprse Intitive togeher with Wroclaw Univeristy of Economics offer a one- year post- graduate study (Effective successor of a family business), which educate a conscious and competent successor, who will manage the family business in a way that enables its survival and development
https://www.podyplomowe.ue.wroc.pl/114,853,skuteczny_sukcesor_firmy_rodzinnej.html BACK<br>
slide23. Who can help in sweden A number of organizations provide advisory in the field of business transfers. The findings, however, suggest that with many of these organizations business transfers is not the main field of activity, but simply an additional service that is offered.
In the following some examples of organizations are listed which offer different forms of advisory:
LandshypotekBank is specialized in agriculture and forestry and disposes of good knowledge of the industry's challenges surrounding profitable farming business and the real estate market upturns (http://www.landshypotek.se/Tjanster/).
LRF Konsult is an accounting company with approximately 600 authorized accounting consultants, which is the largest number of accountants in a single accounting firm in Sweden. Additionally, it is the country's largest provider of forestry and agricultural properties (http://www.lrfkonsult.se/omlrf-konsult/fakta-om-lrf-konsult/vi-ar-auktoriserade-redovisningskonsulter-/).
Svenska Riskkapitalföreningen (SVCA) (Swedish Private Equity & Venture Capital Association) is the association for private equity actors (Buyout and Venture Capital) and business angel networks. The association, which was founded in 1985, has the task of promoting a well-functioning private equity and venture capital market in Sweden. This happens, amongst others, through the dissemination of facts and knowledge about private equity's role in the Swedish economy (http://www.svca.se/omsvca/).
Excore (one of the leading M&A companies in Sweden) is specialized in middle-sized companies with a turnover between 50 million and 2 billion SEK. The firm’s emphasis is on company sales, acquisitions and mergers (http://excore.se/en/services/selling-a-company/). BACK NEXT<br>
slide24. Who can help in sweden What services are on offer and through which channels?
Reflecting on the services offered in Sweden, it is obvious that these services can mainly be assigned to the classical services, i.e. support in the areas of tax, legal and financial issues.
For instance, the private bank Carnegie offers expertise in the areas of tax and law (http://www.carnegie.se/privatbank/att-vara-kund-hos-oss/privatperson-och-entreprenor/skatt-juridik1/). Excore provides online some tips for sellers and acquirers. These tips are oriented to the issue of price setting. In addition, the firm offers two comprehensive books entitled “livsverk till salu” (lifework for sale) and “tillväxt till salu” (growth for sale). These books can be ordered in print or directly downloaded.
PWC has a youtube film about business transfers. Besides, it offers expertise in the areas of tax, economical and legal advisory
(http://www.pwc.se/sv/generationsskifte/index.jhtml?query=generationsskifte&live=1).
• LandshypotekBank provides advisory and capital in the form of loans. Regarding the former, they collaborate with LRF Konsult.
Besides being a contact for financing, the Danske Bank in Sweden offers a guideline for farmers interested in selling their farm (http://www.danskebank.se/sv-se/skog-och-lantbruk/skog-och-gard/att-tanka-pa/att-saljagard/pages/orsak-salja-gard.aspx). Similar can be found with the Swedbank who offers potential buyers support in finding companies that are for sale, financing solutions and regarding tax and legal issues. For potential sellers, Swedbank offers support in the areas of finance, law, and structure. On the website, the bank also provides a movie that briefly informs about buying and selling a company (https://www.swedbank.se/foretag/kopa-eller-salja-foretag/index.htm).
LRF Konsult offers company valuation, business planning, risk analysis, financing solutions, tax solutions that meet the needs of both sides and legal form solutions.
However, it does not exist any completely impartial counselor or coach who can support the process, which could be a prerequisite for more numbers of and more successful transfers. BACK<br>
slide25. Who can help in Russia On both national and regional levels the state policy implies a number of business support measures and the infrastructure of organizations providing financial and non-financial support to businesses has been created.
However, there is no such organization that would have it as a mission to support business transfers. Entrepreneurs willing to get advice on business transfer issues may turn to private consulting companies and law firms. BACK<br>
slide2. Strategy/ plan Family firms represent relatively stable systems so long as the founding entrepreneur is in place. They subsequently become destabilized as a function of such “triggering events” as the decision to bring a family member into a senior position, the founder’s decision to disengage or decision about firms’ selling (Morris, Williams, Nel, 1996). Successful adaptation to the new situation is influenced by the conditions within the firm (e.g. state of maturity, economic health) and family dynamics (e.g. closeness of family, interdependencies among family members, sibling rivalries, financial condition of family members) (Beckhard, Dyer 1983), as well as the situation in the firm’s environment.
Such critical changes in the firm, eventually leading to the ownership and authority transfer, need to be overthought and planned in details (Family Business Survey, 2016). NEXT BACK<br>
slide3. Strategy/ plan Process of planning the business transfer should be preceded by answering the questions from the list below:
is there any family member who wants and can (has the knowledge and skills) takeover the firm?
what skills do the new generation need to succeed?
how generation change of firm’s ownership/authority will influence the relationships among family members?
what are different models of business transfer, beside next generation’s succession? what are pros/cons each of them?
is the firm prepared for the changes? is it structured and functioning on high level of professionalism? (that is fundamental for transferring the authority, know-how and values)
what is the time horizon? what is the deadline the founding entrepreneur wants to complete the process of business transfer? what are his/her plans afterwards?
are there any partners that could support the process? NEXT BACK<br>
slide4. The strategy of business transfer consists elements as follow: analysis, aims, plan of action NEXT BACK elaborated by Anita Richert-Kaźmierska<br>
slide5. Successor/ donator…? It is very important to aswer the question:
How the business transfer might be carried out? Possible model of business transfer:
Model 1 – family transfer
Model 2 – one or more external entrepreneurs
Model 3 – takeover by company executives
Model 4 – takeover by a workers´ cooperative etc.
Model 5 – takeover by another company
Model 6 – takeover in form of a mixed scheme BACK More about model 1 More about model 2 More about model 3 More about model 4 More about model 5 More about model 6 SUPPORT How to finance a business transfer?<br>
slide6. Model 1business takeover within the family Steps to a successful business transfer:
Step 1 - Align Family Goals
A successful transfer involves understanding each generation’s goals.
Step 2 - Evaluate the Senior Generation’s Liquidity Needs
An evaluation of the senior generation’s future income needs should be conducted prior to structuring the transition
Step 3 - Analyze the Company’s Finances
The business’s historical financial performance provides insight into what the company can handle in terms of a transaction as well as a range of values for the parties to consider a transaction.
Step 4 - Evaluate Transfer Methods
Here we evaluate which path(s) to pursue in the ownership transition.
Step 5 - Evaluate and Analyze the Tax Structure
The transfer methods will dictate the tax consequences to the senior generation, the next generation, and the company all need to be evaluated.
Step 6 - Develop a Buy-Sell Agreement
In situations where the business will transfer to more than one owner, developing a buy-sell agreement is of great importance. BACK CASE<br>
slide7. Model 2 – one or more external entrepreneurs Steps to a successful business transfer:
Step 1- Discuss the terms of the transfer of ownership
Clarify the expectations on both sides: the external entrepreneur and the owner.
Step 2 - Consulting experts
Do financial diagnostic and establishing the company’s value, do review tax strategies.
Step 3 - Choosing from the available solutions
Do review of various scenarios with the team of experts and make a choice, do a financing negotiation
Step 4 - Approval and implementation
make diligence review, put up required structures in place, finalize financing. BACK CASE WHO CAN HELP? How to finance a business transfer?<br>
slide8. Model 3 – takeover by company executives/ management team Steps to a successful business transfer:
Step 1 - Clarify the expectations on both sides
Make sure that everyone’s intentions are clearly understood.
Step 2 - Draw up an action plan for the company
A strategic action plan will allow you to take stock of the current position of the company, to identify corrective measures to apply immediately, to outline the key elements of company’s future orientation and to determine what action to take to achieve fixed objectives.
Step 3 - Evaluate the abilities of the company executives /management team
The strategic planning exercise will allow you, among other things, to determine the human resource needs of management.
Step 4 - Establish a training plan for the successors
A training plan in due form for each member of the management team is a very useful undertaking.
Step 6 - Be aware of the issues related to the transfer of management
You must also consider the consequences of failure in your attempt to transfer the company to management. You should not forget the members of your family.
Step 7 - Do not hesitate to call on experts who can provide assistance
Becoming involved in the process of a transfer to management is demanding. Think about a consultant specialized in strategic planning or the help of a consultant specialized in human resource management BACK CASE WHO CAN HELP? How to finance a business transfer?<br>
slide9. Model 4 – takeover by a workers´ cooperative Steps to a successful business transfer:
Step 1 - Deciding to move forward
Research and reading, worker ownership succession options workshop (for owner and their leadership team), initial owner conversation with employees
Step 2 - Getting ready: employee training and business valuation
Financial training for employees, business and industry training, cooperative trainings for employees, business valuation process, business valuation or owner’s price, determine financing options, review and revise current business plan.
Step 3 - Defining structures
Document current management plan, draft cooperative by-laws, define post-transition management
Step 4 - Finalize the transition
Transfer business ownership, negotiate final price, seek financing, future members approve final price and financing, structure, complete the transaction, transfer governance and elect new board, transfer management as necessary.
Step 5 - Follow through and monitoring
Possible ongoing training with current employees. BACK CASE WHO CAN HELP? How to finance a business transfer?<br>
slide10. Model 5 – takeover by another company Steps to a successful business transfer:
Step 1 - Define the Personal Goals of the Owner
The owner must therefore balance his financial and interpersonal goals in order to find the best possible exit strategy
Step 2 - Understand that a Range of Values Exist for the Business
The value of a privately-held business depends largely upon who buys it. ‘External transfers’ to other industry players, financial groups, or by initial public offering, command more liquidity ‘up front’ while the owner relinquishes more control over the company
Step 3 - Examine the Options Available for the Transfer of Shares
There are three primary purchasers of privately-held business stock (or assets):
Parties to the transaction and types of transactions available (samples; not a complete list)
Financial Groups - Recapitalization
Industry Buyers - Acquisition (at Synergy Value)
Initial Public Offerings - IPO (at Public Market Value)
Step 4 - Provide Full Financial Disclosure to the Buyer
Assembling financial records and presenting them to a buyer is very time consuming, not a lot of fun, a very personal survey of how the business is run.
Step 5 - Assemble Your Advisory Team – Don’t Go It Alone
Invest the time and money in the right team of advisors; a successful business exit is more than worth. BACK CASE WHO CAN HELP? How to finance a business transfer?<br>
slide11. Model 6 – takeover in form of a mixed scheme Steps to a successful business transfer:
Step 1 - Retain key employees.
Step 2 - Minimize business interruption and disruption.
Step 3 - Maximize enterprise sale value.
Step 4 - Minimize tax obligations.
Step 5 - Include contingency plans for unexpected life circumstances and business changes.
Step 6 - Ensure the business operates as if a sale will not occur. BACK CASE WHO CAN HELP? How to finance a business transfer?<br>
slide12. Success story from Russia Business transfer cases BACK Success story from Finland Success story from Latvia Success story from Russia Failure story from Russia Success story from Finland Success story from Russia Success story from Russia Success story from Finland Success story from Lithuania Success story from Sweden Failure story from Russia Success story from Poland Failure story from Poland Model 1 Model 2 Model 3 Model 4 Model 5 Model 6 Success story from Estonia Success story from Denmark<br>
slide13. Who can help? In every following countries are different organisations who suport the owner in the succession process.
Denmark
Germany
Estonia
Finland
Latvia
Lithuania
Poland
Sweden
Russia BACK More about support organizations More about support organizations More about support organizations More about support organizations More about support organizations More about support organizations More about support organizations More about support organizations More about support organizations<br>
slide14. Who can help in Denmark The Centre for Owner-managed Business(https://www.cbs.dk/en/research/departments-and-centres/department-of-accounting/centre-owner-managed-businesses) offers a training, an advice and a help in business succession. They have four projects (conferences and workshops) related to: digital training of future leaders, psychological aspects of owner-management and the transfer of ownership process, the importance of the board and management in the transfer of ownerships and the growth through business transfer in Danish owner-managed businesses
" Ejerstrategi-kortet http://www.ejerstrategi-kortet.dk/ - the ownership strategy map, which is a planning tool to help owner managers start planning the future ownership and leadership of their business. The owner strategy map provides specific guidelines on how to incorporate future management and ownership in businesses and 1,300 owner managers and advisors have already used the too.
http://www.match-online.dk - platform where you can seek the advice in connection with business transfer:
Business Aabenraa https://businessaabenraa.com/1-1-sparring/# offers entrepreneurs a support related to review of concept, business plan, budgets, preparation of roadmap, contact with relevant advisors e. g. accounting, law, marketing etc.
Væksthus Syddanmark https://startvaekst.virk.dk/ offers assistance to entrepreneurs in newly started companies, as well as Business Fredericia https://businessfredericia.dk/ivaerksaettersparring/ BACK<br>
slide15. Who can help in germany Nexxt-change
Nexxt-change is an Internet Platform of the Federal Ministry of Economics and Energy, the KfW Bankengruppe, the German Chamber of Commerce and Industry, the Central Association of German Crafts, the Federation of German People's Banks and Raiffeisenbanken and the German Savings Bank and Giroverban. The aim of platform is to bring together entrepreneurs and start-ups interested in succession. Entrepreneurs as well as start-ups and founders can browse the database with the company sales and the firm buying offers or place the advertisement themselves. https://www.nexxt-change.org
Nachfolg-o-mat
The nachfolg-o-mat (“success-o-meter”) is an online tool that gives a general overview about business succession in Germany. Each user can answer different questions and will then receive an individual analysis about their succession knowledge. In addition to that, the users can see in which areas they still need to acquire more information or knowledge and which contacts might be useful for that. http://www.nachfolg-o-mat.org/
The National Agency for Women Start-ups Activities and Services (bga) offers the political, business, academic and public sectors a platform for information and services related to women entrepreneurship in all areas and phases of company foundation, consolidation and business succession. (www.existenzgruenderinnen.de) BACK<br>
slide16. Who can help in estonia E&Y, Delloitte, PWC,
In case of smaller companies, the local companies come into play, such as INVESTMENT AGENCY (see: www.agency.ee)
Estonian Chamber of Commerce and Industry BACK<br>
slide17. Who can help in finland There are numerous organizations involved in business transfer issues, i.e. ministries, tax administration, enterprise associations, enterprise agencies, lawyers, banks, insurance companies, chambers, private consultants, cities, municipalities, etc.
Some examples are given here (see also http://www.theseus.fi/bitstream/handle/10024/97257/B108.pdf;sequence=1):
National: The Federation of Finnish Enterprises (https://www.yrittajat.fi/en) - support for members: membership services, see https://www.yrittajat.fi/en/about-federation-finnish-enterprises/membership-services-526297; Enterprise marketplace (Business Exchange, Yrityspörssi) for buying and selling enterprises https://www.yritysporssi.fi/
National: Enterprise Finland (Ministry of Economic Affairs and Employment) https://yrityssuomi.fi/en/home (new address in January 2018 https://www.suomi.fi/company) - see services https://www.suomi.fi/company/changes-and-crisis-situations/change-of-ownership-and-company-acquisitions
National: Perheyritysten Liitto (http://www.perheyritys.fi/) - coaching for family successors (http://www.perheyritys.fi/palvelut/next/)
National: Finnish Business Transfer Society (https://www.omistajanvaihdosseura.fi/): advice and councelling for business transfers, business value determination calculator for basic value evaluations, links to business marker places (https://www.omistajanvaihdosseura.fi/16)
National: Centre for Economic Development, Transport and the Environment
Regional (member of the Federation of Finnish Enterprises) Satakunnan Yrittäjät (https://www.yrittajat.fi/satakunnan-yrittajat) - services only in Finnish (https://www.yrittajat.fi/satakunnan-yrittajat/a/satakunnan-yrittajat/satakunnan-yrittajat/sukupolven-ja-omistajanvaihdos-284635), but shortly advice on selling and buying, advice on procedures for enterprise ownership change, advice on taxation and value determination, further contacts to other expert services; Regional enterprise marketplace https://www.satakunnanyritysporssi.fi/ for selling and buying enterprises
Regional: Prizztech Ltd (http://www.prizz.fi/en) - services include (http://www.prizz.fi/en/become-entrepreneur#.Wk3b2_ll82w): counselling those who are planning to continue an existing business, directing to experts, making an action plan, consulting a tax adviser
Private franchising chain: Finnish Company Acquisition Ltd. (https://www.yrityskaupat.net/) - services: https://www.yrityskaupat.net/palvelut.php#11 BACK<br>
slide18. Who can help in Latvia BACK Adizes Institute in Latvia (https://adizes.lv/adizes-services/) – They are consulting companies in business transfer processes, mainly those processes which concern employees and people management, not financial.
KPMG Latvia (https://home.kpmg/lv/en/home.html) – They are mainly dealing with business transfer processes which are related to finances (company value evaluation etc.).
PwC Latvia (https://www.pwc.com/lv/en.html) – They could help in legal aspects of the business transfers.<br>
slide19. Who can help in lithuania Enterprise Lithuania ( https://www.verslilietuva.lt) is a non-profit agency under Ministry of Economy and Innovation established to promote entrepreneurship, support business development and business transfer. Agency supports the establishment and development of competitive businesses in the country and fosters the country’s exports by facilitating cooperation with partners’ networks and providing quality training, consultancy, market analysis, and business-partner search services for businesses. They are a recognized facilitator of startup community and ecosystem in Lithuania.
Enterprise Lithuania is a one-stop-shop for entrepreneurs across EU: They provide information on regulations, requirements, licenses as well as quality support to establish business in Lithuania. They are a recognized partner to numerous foreign business associations, chambers and governmental institutions as the first choice in Lithuania to start business, connect with potential partners, identify and explore business opportunities.
They maintain The Lithuanian Exporters Database which is a free online platform tailored for companies that are looking for a reliable business partner in Lithuania. BACK<br>
slide20. Who can help in poland Looking for investor/ buyer Mentoring and training - Business and professional associations BACK<br>
slide21. Who can help in poland the basic browser for PE/VC funds in Poland
http://www.psik.org.pl/new/znajdz_fundusz2.php
portal which facilitate search of suitable angel investor - private investor
http://www.pi.gov.pl/parp/data/pdf_071112/index.html Matching platforms for business transfer in Poland:
szukam-inwestora.com
sprzedambiznes.pl
biznes2biznes.com
investing.pl
bizvendo.pl
startinvest.pl
intereso.pl
biznesoferty.pl
biznesmakler.com
sprzedajkupfirme.pl
inwestbiznes.pl BACK NEXT<br>
slide22. Who can help in poland Chambers of Commerce and Industry National Chamber of Commerce in Poland
It is the largest independent business organization and represents the largest number of entrepreneurs, combining more than 150 business organizations e.g. 65 Chambers industry, 59 Chambers regional, 18 Chambers bilateral, 4 other organizations (associations, employers' associations and foundations). National Chamber of Commerce in Poland and their members are partners in many projects related to the support of SME's enterprises (also in mentoring/training in business transfer process). The basic a search engine for Chamber of Commerce/Industry or Regional chambers in Poland can be found at: https://kig.pl/o-kig/czlonkostwo-w-kig/czlonkowie-kig/
This organization helps businesses innovate and grow on an international scale.
for Central Poland: www.een.org.pl
for East Poland: www.een-polskawschodnia.pl
for West Poland: www.westpoland.pl
for South Poland: www.een.net.pl Agency is involved in the implementation of national and international programs financed from the EU structural funds, state budget and multiannual programs of the European Commission; it paids a special attention on a succession in family business
www.parp.gov.pl
A public organization operating for the benefit of family businesses
www.firmyrodzinne.pl
The Family Enterprse Intitive togeher with Wroclaw Univeristy of Economics offer a one- year post- graduate study (Effective successor of a family business), which educate a conscious and competent successor, who will manage the family business in a way that enables its survival and development
https://www.podyplomowe.ue.wroc.pl/114,853,skuteczny_sukcesor_firmy_rodzinnej.html BACK<br>
slide23. Who can help in sweden A number of organizations provide advisory in the field of business transfers. The findings, however, suggest that with many of these organizations business transfers is not the main field of activity, but simply an additional service that is offered.
In the following some examples of organizations are listed which offer different forms of advisory:
LandshypotekBank is specialized in agriculture and forestry and disposes of good knowledge of the industry's challenges surrounding profitable farming business and the real estate market upturns (http://www.landshypotek.se/Tjanster/).
LRF Konsult is an accounting company with approximately 600 authorized accounting consultants, which is the largest number of accountants in a single accounting firm in Sweden. Additionally, it is the country's largest provider of forestry and agricultural properties (http://www.lrfkonsult.se/omlrf-konsult/fakta-om-lrf-konsult/vi-ar-auktoriserade-redovisningskonsulter-/).
Svenska Riskkapitalföreningen (SVCA) (Swedish Private Equity & Venture Capital Association) is the association for private equity actors (Buyout and Venture Capital) and business angel networks. The association, which was founded in 1985, has the task of promoting a well-functioning private equity and venture capital market in Sweden. This happens, amongst others, through the dissemination of facts and knowledge about private equity's role in the Swedish economy (http://www.svca.se/omsvca/).
Excore (one of the leading M&A companies in Sweden) is specialized in middle-sized companies with a turnover between 50 million and 2 billion SEK. The firm’s emphasis is on company sales, acquisitions and mergers (http://excore.se/en/services/selling-a-company/). BACK NEXT<br>
slide24. Who can help in sweden What services are on offer and through which channels?
Reflecting on the services offered in Sweden, it is obvious that these services can mainly be assigned to the classical services, i.e. support in the areas of tax, legal and financial issues.
For instance, the private bank Carnegie offers expertise in the areas of tax and law (http://www.carnegie.se/privatbank/att-vara-kund-hos-oss/privatperson-och-entreprenor/skatt-juridik1/). Excore provides online some tips for sellers and acquirers. These tips are oriented to the issue of price setting. In addition, the firm offers two comprehensive books entitled “livsverk till salu” (lifework for sale) and “tillväxt till salu” (growth for sale). These books can be ordered in print or directly downloaded.
PWC has a youtube film about business transfers. Besides, it offers expertise in the areas of tax, economical and legal advisory
(http://www.pwc.se/sv/generationsskifte/index.jhtml?query=generationsskifte&live=1).
• LandshypotekBank provides advisory and capital in the form of loans. Regarding the former, they collaborate with LRF Konsult.
Besides being a contact for financing, the Danske Bank in Sweden offers a guideline for farmers interested in selling their farm (http://www.danskebank.se/sv-se/skog-och-lantbruk/skog-och-gard/att-tanka-pa/att-saljagard/pages/orsak-salja-gard.aspx). Similar can be found with the Swedbank who offers potential buyers support in finding companies that are for sale, financing solutions and regarding tax and legal issues. For potential sellers, Swedbank offers support in the areas of finance, law, and structure. On the website, the bank also provides a movie that briefly informs about buying and selling a company (https://www.swedbank.se/foretag/kopa-eller-salja-foretag/index.htm).
LRF Konsult offers company valuation, business planning, risk analysis, financing solutions, tax solutions that meet the needs of both sides and legal form solutions.
However, it does not exist any completely impartial counselor or coach who can support the process, which could be a prerequisite for more numbers of and more successful transfers. BACK<br>
slide25. Who can help in Russia On both national and regional levels the state policy implies a number of business support measures and the infrastructure of organizations providing financial and non-financial support to businesses has been created.
However, there is no such organization that would have it as a mission to support business transfers. Entrepreneurs willing to get advice on business transfer issues may turn to private consulting companies and law firms. BACK<br>