Tame your ego for successful business takeover

In the agricultural sector, taking over a business is often not an easy task. It has business and emotional aspects that make the process quite challenging. For one farmer, it is the crowning achievement of years of driven entrepreneurship. For another, it is the start of a new beginning.

Agriculture is (we believe) unique. When a company is acquired, it is not just a financial transaction, but also an emotional one. Farmers have been connected to their land and business for generations. The idea of ​​letting go of that and letting one or more successors take charge is quite a step. For the acquirer, it is equally challenging: It is essential that both parties know how to tame their egos.

The right candidate
The first step is to find the right candidate. Not everyone who is interested has the potential capacity, financial possibilities and experience to successfully take over a company. Subsidies, loans and tax facilities – such as the BOR scheme – can help, but the administrative hassle and the uncertainty surrounding the future of the sector do not make it any easier.

In addition, there is a lot involved in the transfer itself. In an agricultural company, the assets are not only of financial value. Think of land, buildings, machines and of course the animals. Each aspect has its own legal and fiscal implications. This requires not only knowledge of the matter but also a good team of advisors: from accountant to legal expert.

New vision
And then there are the future plans. What happens to the company after the takeover? The new farmer must not only continue, but above all develop a vision and strategy for the future. Sustainability, technological innovation and changing markets require a fresh perspective and new strategies. This can go against the traditional values ​​of the previous generation, which in turn leads to tensions. Let's be honest, the past decades have shown that change is the only constant. Whether you like it or not. Moving along and anticipating a continuously changing world is necessary to continue to be a successful entrepreneur.

Communication plays a crucial role in this process. It is important that the parties involved talk openly with each other. This applies not only to the transferor and the transferee, but also to the rest of the family. The impact of a business takeover extends beyond those directly involved. The question is whether everyone is ready for it and can also agree with the choices made.

Strong future
At a time when the agricultural sector is under pressure from climate change, economic uncertainty and changing consumer preferences, the importance of successful business takeovers is becoming even clearer. A positive transfer can give the company a new boost and ensure a strong future. The process must be guided well and attention must be paid to all aspects: financial, emotional and social.

For the new farmer it is important to be open to the experiences of the previous generation and at the same time to choose his own path. In order to avoid disappointments, it is wise to invest in good guidance in addition to the full agenda on the farm. Find an experienced expert who helps in the new world. Of course there will be tough moments, then being open to developments and showing decisiveness is what makes the difference.

Peter Pals

Peter Pals is an entrepreneur at Farmers Funding & Advies and grew up on a farm. From his farming heart, he has decided to build up a business for business, financial and tax advice for agricultural entrepreneurs.

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