In his view, the sale price often plays a decisive role, because “a business sale frequently fails due to business owners’ unrealistically high expectations regarding the purchase price.”
Once entrepreneurs have decided to hand over their business, they often overlook the opportunity to better position their company for the long term with the help of an experienced interim manager, thereby increasing the company’s value. In short: They forget to “make the bride look her best.” Yet it is precisely by doing so that business owners create a stronger starting position and negotiating leverage for their own business succession.
New Momentum Through Interim Management
Whether a management buyout or a handover to an external buyer is planned, every business transition requires sufficient lead time. A period of six to 18 months is realistic for sustainably positioning your business for the future ahead of the generational transition. Interim management allows you to bring in external expertise that supports the entrepreneur’s own interests and prepares the company for the handover.
If business succession is not arranged within the family or the company itself, a sale is often pursued. In this case, interim management can uncover valuable opportunities for increasing the company’s value. As with traditional support in business management provided by external specialists or management consultants, it is only through the perspective of an outsider that it becomes clear which improvements make sense and how the company can better address future challenges. The advantages of interim managers are clear: As specialists, they possess the desired skills right away without requiring a lengthy onboarding period, apply them immediately, and—because their assignment is temporary—do not pursue any conflicting personal interests.
Preparing for the generational transition with targeted interim management
Older and experienced business owners, in particular, fear successors who will turn the company upside down and radically alter its original character. This is not necessarily a concern with interim management, as the specialized manager familiarizes themselves with the unique characteristics of the respective business and strives to preserve them—not just in terms of brand identity.
In this role, interim managers must listen carefully and communicate effectively with employees. It is crucial to understand the company’s DNA before implementing any restructuring and to carry out necessary changes in a targeted yet diplomatic manner.
Thus, through targeted measures—for example, in internal processes, sales, purchasing, or production—an interim manager can substantially increase the company’s value. As a result, the company’s value actually accepted by buyers may approach or even exceed the seller’s originally unrealistic expectations.
Since a higher, realistic company value—based on plausible assumptions—also affects the achievable purchase price, the investment in interim management can pay off many times over in a short period for a senior entrepreneur preparing for business succession.
