Succession in family businesses is rarely a simple transaction. Many think it’s about spreadsheets, legal contracts, or ownership transfers. In reality, the hardest part isn’t the paperwork—it’s the people. Misalignment between generations can derail even the most carefully planned succession, putting both business value and family relationships at risk.
Why Family Succession Fails
Matthias Kramer, Partner at Brandt & Partners, has guided numerous family-owned businesses through succession processes. He emphasises:
“Even the most capable successors will struggle if the family isn’t aligned first. Conversations, not just contracts, make the difference.”
From his experience, there are three recurring challenges:
- Unspoken Expectations: Family members often have different visions for the company’s future, or unclear personal goals.
- Rushed Decisions: Succession is frequently treated as a one-off task to complete quickly, rather than a structured, long-term process.
- Undefined Roles and Responsibilities: Without clarity, even talented successors struggle to lead, and existing teams can become confused or resistant.
Andrew Bergmann, the B&P Expert for Post Merger Integration (PMI) also notes that in SMEs, resources are usually very limited. After a merger, acquisition, or succession, the same small team often has to implement the plan. If family alignment is missing, it can exacerbate operational challenges:
“The process fails not because the successor lacks ability, but because the organizational and emotional alignment wasn’t in place.”
The Importance of Early Alignment
Early alignment is key. Succession planning should begin well before legal or financial formalities. By creating a safe space for open discussions, families can explore goals, expectations, and potential conflicts without pressure.
Matthias Kramer explains:
“Structured conversations allow family members to voice expectations, align on objectives, and reduce uncertainty before any formal plan is drafted. This is where the real work happens.”
Steps to a Successful Succession
Brandt & Partners advises a structured approach that goes beyond financial planning:
- Start the Conversation Early
- Open dialogue years before the handover ensures everyone has time to prepare and adapt.
- Define Roles and Goals Clearly
- Clarify who will manage what, and what personal and professional ambitions each member has.
- Use Experienced Advisors
- Engaging a partner like Matthias Kramer helps navigate sensitive topics and ensures the succession plan balances business and family needs.
- Create a Roadmap
- Document the plan with clear timelines, decision points, and contingency strategies. This roadmap serves as a guide for all family members and future leaders.
Common Mistakes to Avoid
Even well-intentioned families can make mistakes that compromise the process:
- Ignoring emotional dynamics: Succession isn’t just about capability; it’s about trust, communication, and emotional readiness.
- Treating succession as a transaction: Many focus solely on ownership transfer or financial outcomes. Without alignment, these efforts often fail.
- Underestimating the complexity: As Andrew Bergmann points out, “In family SMEs, you don’t have the luxury of large teams. Misalignment can quickly block critical decisions and stretch resources to breaking point.”
Conclusion
Succession in family businesses is far more than spreadsheets and contracts. The real success factor is alignment between people—clarity, trust, and communication across generations. Early, structured conversations, guided by experienced advisors like Matthias Kramer, help families secure both their business legacy and their relationships.
“Alignment first, strategy second. Conversations, not contracts, make the difference.” – Matthias Kramer
Call to Action
Are you preparing for a family business succession? Don’t leave it to chance. Talk to Matthias Kramer at Brandt & Partners to guide your family through alignment, clarity, and a smooth transition:
