Business takeover: stress or success?

Business takeover in the agricultural sector is one of the most important events in the life of an agricultural entrepreneur. It marks the end, but also the beginning of an era in the lives of those involved. In this blog we look at how a business takeover can be successful, instead of stressful.

By far the majority of company takeovers in the agricultural sector take place within the family sphere. This means that in addition to financial, fiscal and other practical aspects, social-emotional matters also play an important role. Your business and private life are strongly intertwined.

Experience has shown that during a takeover process most attention is paid to the first 3 aspects (money, tax, labour) and often not, or not enough, to the last aspect. Yet it is the social-emotional or human side that is of decisive importance in the success of the company takeover.

Stress
I often find myself in situations where the company takeover causes a lot of stress for everyone involved. The source of this stress almost always lies in poor communication, differences in character and/or in the future or the company vision. In many cases people have started working together without wondering what this really means and whether the people involved are also suitable for it.

Characteristic of many of these situations is that the frustrations accumulate over the years and are not discussed and resolved in a good way. The result: tensions, quarrels and conflicts. Not a good starting point for a successful collaboration and business takeover.

Succes
Business takeover therefore starts with collaboration. For tax and financial reasons, sure. So get good advice in that area. But working together is also important to give the successor the opportunity to gain more experience and knowledge and to grow in leadership and entrepreneurship.

In order to work well together, you need to communicate well with each other. That's the basics, that's where it starts. The core of communication is listening. Try to understand the other first, and then be understood yourself. That's the rule of thumb. Understanding others can be created by listening carefully and that is not always easy, especially when emotions play a role. In addition to the basic condition of listening - for successful collaboration and ultimately a successful business takeover - there are a number of handles that can help you.

At the start of the collaboration:

• Are both parties suitable to work together? You investigate this by determining whether the characters and personalities fit together. Do you complement each other or do you work against each other? Investigate that and be honest about the outcome with each other.
• Stay connected! Communication is the key to that.
• Is communication not so easy? Then consider the support of a coach who can help you.
• Express expectations to each other. What do you expect from the other, and what does the other expect from you?
• Plan and hold regular work meetings;
• Make a clear division of tasks and task description. If necessary, record tasks in protocols;  
• Develop a joint business vision. Where do you want to be with the company in a few years?
• Make agreements about decision-making powers. Who decides what and what do you do if you disagree?
• Evaluate the collaboration regularly. What is going well, what is not and what could be improved?
• Are your personal and business goals still clear and realistic? Be honest with each other, especially when things threaten to go wrong;
• Make agreements about how you will proceed if your collaboration unexpectedly gets stuck;
• Record the agreements made, that provides guidance and clarity.

As the actual transfer approaches:

• Involve the other family members/stakeholders in the takeover process in time, for example by having regular consultations. Will the takeover be awarded to the successor? Which ambiguities or obstacles still need to be resolved?
• Make clear agreements about the role of the transferring party. To what extent will they become involved in the company or not?

I see many situations where parents, children, or other stakeholders continue to muddle through for too long. As a result, the collaboration does not go well, with all the negative consequences that entails.

Perhaps the most important advice is that if the cooperation does not go well, you call in outside help in time. Let an independent coach help you to get things workable and to make good choices. Getting help in time can ultimately prevent a lot of financial and emotional suffering.

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Dik Veefkind is an agricultural coach and mediator at AgroCoach. In his blogs he focuses on the psychological challenges of the farmer, such as burnouts and business conflicts. He also supports people entering the grounds in difficult situations.

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