Business Succession in Family-Owned Businesses
Succession planning for a business is more than just a transaction.
It’s about the future, the culture, and the continued development of what has been built up over the years.
With FORUM, you have a family office at your side that takes over the business and develops it for the long term.
A long-term succession plan with FORUM
FORUM acquires companies as part of a succession plan and develops them for the long term.
For business owners, this means:
- Long-term perspective FORUM invests with permanent capital and intends to hold onto companies for the long term
- Autonomy is preserved Companies are managed on a decentralized basis and retain their identity
- Collaboration as equals Trust, open communication, and a strong sense of integrity define our collaboration
- 's business approach: Focus on long-term development, investment, and strengthening the company, rather than short-term returns
Our goal is to strengthen your business for the long term and continue to operate it as a "Good Home."
The Challenge of Business Succession
Succession in family businesses is a pivotal moment for many owners. It is not just a matter of transferring ownership.
The key question is: Who will take over the company, and how?
Especially for small and medium-sized businesses, this is not purely an economic decision. It involves a life’s work that has been built up over many years or decades and should be continued in a meaningful way. Typical scenarios include:
- There is no suitable successor in the family.
- The next generation doesn't want to take over.
- An external solution is necessary.
What matters, therefore, is not just the sale itself, but what happens afterward.
What sets FORUM apart from other investors
Not every investor takes the same approach. FORUM deliberately follows a model that differs from traditional buyers in several ways:
- Permanent capital: There is no set time for selling. Companies are held for the long term and further developed.
- Independence from fund structures: Decisions are not determined by time horizons or exit requirements, but by the company’s performance.
- Decentralized management: Companies remain independent. There is no integration into rigid corporate structures.
- Business Approach: The focus is on sustainable growth, investments, and the further development of our existing business.
The key point is this: it’s not about a quick resale, but about ensuring the company’s long-term stability.
Business succession is more than just a sale
When it comes to succession planning, many business owners first consider selling their company.
And of course, price plays an important role. But when you talk to people, you quickly realize that’s rarely the only factor.
It’s about a company you built yourself. Or perhaps one you took over from your father and continued to develop. It’s about employees who have been with you for years. And it’s about the question of what will become of it all.
It is precisely at this point that other issues often come up that weren't really on anyone's mind before:
- Will the company remain as it is today?
- What will happen to the team?
- What's next for management?
- Will the company continue to invest, or is it focusing on a future sale?
These aren't minor issues. In the end, they determine whether the succession feels right or not.
Three types of buyers of medium-sized companies
When it comes to external succession planning, there are basically three possible types of buyers. The choice is crucial for the future of the family business, because anyone who wants the company to continue operating in the long term needs a partner who pursues the same goals. The types of buyers—corporations, family equity, and private equity—differ fundamentally.
Sale to a corporation
Groups buy in order to integrate. They focus on synergies. After the takeover, central functions and processes of the group are transferred to your family business, which means that decisions are made more slowly. After some time, it is completely unclear whether responsibility lies "at the top or at the bottom" and many good employees leave the company in frustration. After a few years, your family business is then fully integrated into the group.
SALE TO FAMILY OFFICE
Family offices such as FORUM buy companies in order to preserve and increase a family's assets for the next generation - a classic example of family equity as a long-term investment solution. Most family offices do not sell at all. This gives your family business a safe haven. Family offices think long-term, which is why they invest in securing the future, i.e. employees, innovation and sustainability. This makes them the ideal successors for family businesses. In addition, they usually operate on the basis of handshake quality - based on old business virtues.
Sale to Private Equity
Private equity funds are designed as funds with a limited term and therefore have to turn over their investments every 3-5 years: they buy to sell at a higher price - preferably with a lot of debt. In this respect, your family business is prepared for sale from the time of purchase: Cost-cutting and foregoing investment with a long payback are typical developments. The financiers become dominant in the corporate culture.
The Role of Family Offices
As a true family office, the FORUM Group brings a wealth of expertise and decades of experience in acquiring and successfully managing businesses. Our long-term family equity approach to succession planning for your family business ensures that we not only facilitate a smooth transition to the next generation but also preserve the company’s success and values over the long term.
In addition, family offices typically acquire companies of a similar nature. The acquired family business is thus integrated into a network—one might say an extended family—consisting of companies operating in a similar manner. This facilitates mutual support, cooperation, and knowledge transfer. Furthermore, a family office operating in this manner has already gained experience with similar companies and can thus develop a succession plan that is specifically tailored to the needs of the respective company while simultaneously promoting long-term growth.
How we can effectively support you
We acquire companies as part of succession planning and support the sale process as a long-term partner.
Together, we establish a clear foundation for the next steps, from assessing your company’s position to structuring the transaction. We draw on our experience from similar situations, evaluate options, and ensure swift, reliable execution. In doing so, we take ownership of the process and foster a sense of accountability so that decisions are made and implemented.
The partnership doesn't endafter the acquisition: We continue to develop the company together and make targeted investments to strengthen it for the long term.
To this end, we draw on a strong network of professionals and industry experts to develop tailored solutions. On the “Investments” page, you can learn more about our active investments and strategies. Together, we develop strategies that support both succession planning for family businesses and the successors of family businesses.
Real and Pseudo Family Offices
The Family Offices we are discussing here have a single family in the background - that's why they are also called "Single Family Offices". In addition, there are "pseudo family offices", e.g.
a) Asset managers who manage the assets of many clients or families. In these constellations, a liquidation of the investment in a few years is almost always pre-programmed.
b) Private equity funds that have families as investors. They are private equity funds - with all the characteristics we have described above. Investment bankers call the shots - like the gentleman on the right.
COMMENTS from previous sellers
"I chose FORUM as the acquirer because I liked the handshake mentality and the very fast, binding and reliable way of working of Dr. Wittek. I expect FORUM to continue my life's work profitably together with my employees, who have remained loyal to me for many years."
Family offices as successors in family businesses
When selling a family business, choosing the right buyer is crucial. Private equity firms can generate short-term profits through cost efficiency and restructuring, which can be advantageous in certain situations. Family equity, on the other hand, offers a sustainable alternative. Family offices, which manage the capital of wealthy families (hence the term “family equity”), have a strong interest in the long-term development and stability of the business. They typically do not follow a strict exit plan and continuously invest in innovation and employee development. This long-term focus fosters the corporate culture and ensures the company’s sustainable competitiveness. Family Equity supports the long-term goals and values of family businesses and ensures a harmonious and successful future.