Organising company succession is a complex and emotional process for founders. Entrepreneurs who want to hand over their life’s work are faced with important decisions: Who will continue to run the company, and what strategic solution will secure its future?

Well-thought-out succession planning combines economic foresight with a clear communication strategy to ensure stability and trust among employees, investors, business partners, and customers.

Timely company succession planning is essential.

Early company succession planning is essential in an uncertain economic environment with a shortage of skilled labour and volatile market changes. A successful company handover requires a clear strategy that considers not only legal and financial aspects but also communication with all target groups—and this is in all phases of the process. Without well-thought-out communication led by the managing director or, in the best case, by the founder, there is a risk of uncertainty, staff turnover, and loss of value for the company.

Options for company succession

Management buy-out (MBO): An MBO involves a takeover by the existing management team. In an MBO, existing managers or employees take over the company. This ensures continuity, as the team is already familiar with the corporate culture, processes, and customers.

– Advantages:

✔ Smooth transition without significant cultural changes

✔ Continuation of corporate values and strategic direction

✔ Trust among employees and business partners remains intact

– Challenges:

✖ Financing can be complex as management teams are often reliant on external loans or investors

✖ Managers must assume entrepreneurial responsibility and strategic thinking

– Management buy-in (MBI): External managers or investors take over the company. This can bring innovation and new impetus for growth.

Advantages:
✔ External expertise and fresh strategic approaches
✔ Access to new networks and business opportunities
Challenges:
✖ Cultural adaptation necessary to gain acceptance within the company
✖ Risk of resistance and uncertainty within the team

 – Sale to a private equity firm: Capital-strong investors take over the business intending to increase its value, and the sale to a private equity (PE) firm offers founders financial security and opens up new expansion opportunities.

– Advantages:

✔ Immediate liquidity for the owner

✔ Capital and strategic expertise to scale the company

– Challenges:

✖ Loss of control, as PE companies are primarily focused on optimising returns

✖ Risk of restructuring, which can change the corporate culture

– Sale to a competitor: A competitor integrates the company to strengthen the market. A sale to a competitor can bring strategic advantages but requires a careful approach.

– Advantages:

✔ Stronger market position through synergies

✔ Rapid integration thanks to industry expertise

– Challenges:

✖ Risk of changing the corporate identity

✖ Uncertainty among employees and customers about future structures

The key to successfully organising company succession lies in strategic planning and professional, empathetic corporate communication led by the founder or managing director.

CEO communication strategy: the key to a smooth handover

A successful succession process also depends on how transparent and structured communication is organised and managed. Uncertainty among employees, investors or customers can destabilise the company. A straightforward narrative and a targeted CEO communication strategy are required.

The most critical aspects of effective company succession communication

– Early planning: A transparent communication strategy creates trust and enables a gradual handover.

– Consider emotional factors: Succession processes are often accompanied by uncertainty, pride and feelings of loss. An empathetic approach strengthens loyalty.

– Customised messages for different target groups: Employees, investors and customers have different information needs that must be addressed in a targeted manner.

Managing public communication: Well-thought-out external communication protects the company’s reputation and strengthens trust in the succession process.

Successful company succession with strategy

I support and advise entrepreneurs in organising the succession process, which includes a clear communication strategy. My experience as an entrepreneur, banker, and communications professional supports this.

– Preparation for the sales process: Strategic planning and support in all phases of company succession.

– Developing a Management communication strategy: Customised approaches for employees, investors and customers

– Crisis communication and risk management: minimising uncertainties, rumours and information leaks

– Support in negotiations with M&A boutiques and private equity firms: Understanding PE and M&A mechanisms and support during critical discussions.

– Media training for managing directors: professional handling of the media and the public.

Successful company succession secures the continued existence of the company and ensures a dignified and sustainable transition for owners, employees, and stakeholders alike.