Preparing for the next generation

The situation

A medium-sized technical installation company, with 35 years of experience in climate control for the healthcare sector, was facing a major transition. The founder and managing director (68) had built the company from the ground up into a respected player with 42 employees. After years of personal involvement in all major decisions, he wanted to make room for the next generation. His daughter expressed interest in a leadership role, but lacked experience in certain business aspects. At the same time, the entrepreneur was considering a partial exit to secure his retirement.

The challenge

The company faced several complex challenges:

• The organization was heavily dependent on the founder's knowledge and network
• There was no clear management structure for the period after his departure
• Financial processes were not fully optimized for value creation
• The subsidiary had potential, but lacked experience in operational leadership
• There was uncertainty about the best transition strategy: full family succession, external management, or a hybrid form

Our approach

1. Thorough business scan

CNIP conducted a comprehensive review with a focus on:

• Financial performance analysis: We identified the company's true value drivers and found that certain services were more profitable than expected, while others were loss-making despite their revenue contribution.
• Cost lagging analysis: We analyzed the cost structure and found areas where costs were rising unnecessarily due to inefficient processes and lack of systematic control.
• Investment discipline: We evaluated investment decision-making and saw that decisions were often made by feel without a consistent ROI framework.
• Organizational SWOT: We identified the strengths, weaknesses, opportunities and threats of the organizational structure, paying particular attention to the competencies present versus those needed for future growth.

2. Development of a structured transition plan

Based on the scan, CNIP developed a step-by-step plan:

• Organizational redesign: Creation of a clear management structure with clearly defined roles and responsibilities.
• Financial optimization: Implementation of a robust financial reporting system with a focus on the identified value drivers.
• Knowledge assurance: Systematically capturing the founder's implicit knowledge in processes and training materials.
• Development path: Creation of a personal development plan for the subsidiary focused on strengthening leadership and financial management.
• Exit strategy: Development of a phased plan for the founder's partial exit.

3. Implementation guidance.

CNIP remained hands-on involved in the implementation:

• Coaching: Regular sessions with both the founder and his daughter to discuss and adjust the transition.
• Process improvement: Implementation of core operational efficiency and financial control systems.
• External expertise: Identification and introduction of external talent for specific management positions to complement family leadership.
• Stakeholder management: Guidance in communicating with customers, employees and financial partners about the transition.

The result

The systematic approach enabled a smooth and controlled transition:

• The company was given a professional management structure with clear roles for family and non-family members
• Financial performance improved through focus on the right value drivers and better cost control
• The daughter grew in her role as operations director, supported by experienced managers
• The founder was able to gradually step back while maintaining confidence in the company's future
• The value of the company increased, which improved the options for a partial exit

The family business now has a clear path to the future, maintaining its core values while making the organization more professional and less person-dependent. CNIP's focused approach provided a structured transition that ensured both the continuity of the business and the personal goals of the founder.