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Workshop Family Firms 25 June 2012
 

Workshop Family Firms 25 June 2012

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    Workshop Family Firms 25 June 2012 Workshop Family Firms 25 June 2012 Presentation Transcript

    • Questions? #MFMFFSuccession of the Family Firm: ell-it-on, Pass- it-on or have it managed for you? l June 25th, 2012 Brussels, J B MFM Alumni partner:
    • Questions? #MFMFF Agenda Civil and legal aspects of succession Jean-Philippe Bonte, Head of Wealth and Analysis Planning at ING Investing in (the transfer of) family firms Walter Beyen, Partner at Vectis Participaties Beyen Conflict prevention & mediation Hanne Van Waeyenberge, Expert in family business mediation Transfer in family owned companies Karel Boone, Lotus Bakeries Moderator Miguel Meuleman, Assistant Professor at Vlerick Leuven Gent Management School Reception MFM Alumni partner:
    • Questions? #MFMFF Civil and legal aspects of successionJean-Philippe Bonte, Head of Wealth and Analysis Planning at ING MFM Alumni partner:
    • Questions? #MFMFFInvesting in (the transfer of) family firms Walter Beyen, Partner at Vectis Participaties MFM Alumni partner:
    • INVESTING IN (THE TRANSFER OF) FAMILY FIRMSVISION OF A FINANCIAL INVESTOR
    • WHO IS VECTIS PARTICIPATIES ?Independent investment fund (EUR 35 million)Invests since 2004 i (Fl i h) SME’I i in (Flemish) SME’sInvestment tickets between EUR 0,25 and 3 million (minority stakes)Provides operational support (interim CFO)Investors: Gimv, institutional investors and ± 40 Flemish entrepreneursVarious investment options: p MBO / MBI / OBO transactions (a.o. succession issues, exit of the family, …) Growth financing Starters with experienced managementInvestment amounts between EUR 0,25 and 3 million (minority stakes)Currently 9 participations in family firms 6
    • OPERATIONAL SUPPORTDirector Discuss strategic issues Monitor strategy implementation(Interim) CFO Sounding board for management; Implement (analytical) financial reporting; Legal support & assistance with HR related matters; Point of contact for banks and insurance companies; Prepare and monitor budgets & business plans; “Independent” mediator in case of tensions/discussions between operational shareholders.Bridging the period in which the company is not able to attract a fulltime CFO 7
    • CHARACTERISTICS OF INVESTEMENTS IN FAMILY FIRMSThe decision to sell the company is often an impulsive/emotional decisionA family firm is usually not (optimally) structured to attract an externalpartner/acquirerFamily firms usually have a “thin” management structureSale of the company could be initiated by (fiscal) wealth planning 8
    • ALTERNATIVE FOR 100% SALE : THE “OWNER BUY OUT”Sale of the family business to an acquisition vehicle (“Newco”) Newco acquires 100% of the shares of the family firm Capital of Newco is contributed by private equity, family and management Balance of transaction price : bank financing (2 – 2,5 x EBITDA) and vendor loansBenefits of an “OBO” for family shareholders Diversification of family wealth Financial investor provide strategic advice for further growth Family entrepreneur stays CEO Financial investor and CEO join forces to establish a professional management team Financial investor exits in 5 to 7 years 9
    • Vectis Participaties i i i i Stratem 11 bus 2 Stratem 11 bus 2 9880 Aalter Phone  09/375.69.00 vectis@vectisparticipaties.be  www.vectisparticipaties.be  10
    • Questions? #MFMFF Conflict prevention & mediationHanne Van Waeyenberge, Expert in family business mediation MFM Alumni partner:
    • ConflictC fli t prevention & mediation ti di tiSuccession of the family firmVlerick MFM Al mni AlumniING, Brussels, June 25th 2012Hanne Van WaeyenbergeExpert in family business mediationwww.inderminne.com in der minne weer minnen meer winnen
    • “I want t sell our family firm” t to ll f il fi ” in der minne weer minnen meer winnen
    • “I want t sell our family firm” t to ll f il fi ”… was only a cry for mutual understanding. in der minne weer minnen meer winnen
    • A.A CONFLICT PREVENTION (3 messages)B. THE POWER OF MEDIATION in der minne weer minnen meer winnen
    • A. CONFLICT PREVENTION1. M1 Message to the founding families t th f di f ili“The succession of a family business is a long termpsychological proces proces.The emotional and relational aspects are of more importancethen all technical aspects ( i (legal, fi financial, fi i fiscal).” ) in der minne weer minnen meer winnen
    • “a l“ long t term psychological proces” h l i l ”A proceeding in stages: Phase 1: Preparation: am I (& are we) ready for succession? Phase 2: Decision making: we choose • to sell • an external manager controlled by the family • succession by family Phase 3: Elaboration: legal, financial, fiscal arrangements Phase 4: Implementation: selling / leaving / introducing / … in der minne weer minnen meer winnen
    • “a l“ long t term psychological proces” h l i l ” in der minne weer minnen meer winnen
    • “a l“ long t term psychological proces” h l i l ” in der minne weer minnen meer winnen
    • “a long term psychological proces”“ l t h l i l ” Start in time Take your time in der minne weer minnen meer winnen
    • “the emotional and relational aspects”Letting go is difficult for: the family business-leader ! the family the companyTips: take your time focus on your mental well-being in der minne weer minnen meer winnen
    • “the emotional and relational aspects” The earnings of the sale will not compensate the loss of identity or status status. Distance yourself mentally from the business before the sale! in der minne weer minnen meer winnen
    • “the emotional and relational aspects”Acknowledge, name and take care of g ,emotions + needsCommunicate about it  by yourself  within the family  in your communication with the potential investorTips: seek assistance of a facilitator choose only an investor who fits with your needs in der minne weer minnen meer winnen
    • mind the calimero-reflex i d th li fl in der minne weer minnen meer winnen
    • mind attribution b h i i d tt ib ti behaviour in der minne weer minnen meer winnen
    • 2. Message to the externall investors2 M t th t i t the legal owner the psychological owner The psychologicall owner Th h l i  has control  intimately know the firm  invests himself into the project  is seen as the major representative in der minne weer minnen meer winnen
    • Mind theMi d th syndrome of the conqueror d f th in der minne weer minnen meer winnen
    • 3. M3 Message to the externall manager t th t in der minne weer minnen meer winnen
    • B.B THE POWER OF MEDIATION in der minne weer minnen meer winnen
    • The dTh advantages of mediation t f di ti Short term  informal & fast procedure SOLUTION  low cost  a consensual solution based on needs Long term  relationship ( p (trust, comprehension, respect) , p , p )  (self) empathy TRANS- FORMATION  quality of communication Mediation empowers! in der minne weer minnen meer winnen
    • Questions? #MFMFFVision of the entrepreneur Karel Boone, Lotus Bakeries MFM Alumni partner:
    • Questions? #MFMFFQ&A MFM Alumni partner:
    • Thank you for your attention MFM Alumni partner: