BDO: Significant company succession risks in the domestic SME segment
In the current, unpredictable macro environment, many companies are and may be in a difficult situation, but the risks may be magnified in the case of domestically owned companies that have been managed by their founders. Any owner who does not have a scenario for what the fate of the company would be without him, may be risking his entire life’s work – experts from the Hungarian BDO Financial Consulting department drew attention.
![](https://trademagazin.cdn.webgarden.io/wp-content/uploads/2022/11/Ke%CC%81pernyo%CC%8Bfoto%CC%81-2022-11-21-10.38.29.png)
Several companies have no schedule for this
In most cases, the succession of domestic enterprises founded at the time of the regime change, which have now grown relatively large, has not been resolved. The founder’s children or other family members are often unable or unwilling to take over the baton, so the company must eventually be sold. However, they are often not prepared for this at all, which in extreme cases can make an apparently prosperous business unfit for sale. If, in addition, the compulsion to succeed comes suddenly, or – which is not uncommon today – it is accompanied by a simultaneous drop in profitability, there are already serious problems
Róbert Tárnok, BDO manager, pointed out.
Related news
There is a lot of uncertainty among SMEs
The Economic and Business Research Institute’s (GVI) Quarterly Economic Index…
Read more >Hungarian businesses do not innovate due to a lack of capital
55 percent of domestic enterprises did not introduce an innovation…
Read more >K&H SME confidence index: How much do SMEs manage?
Domestic enterprises continue to plan for growth in terms of…
Read more >Related news
A new office responsible for food safety and retail trade can be established under the leadership of Márton Nagy
A new top organization called the National Trade Office could…
Read more >K&H: Almost two-thirds of businesses are planning development
The majority of domestic micro, small and medium-sized enterprises, 61…
Read more >KSH: industrial production fell by 8.2 percent in June
In June 2024, the volume of industrial production was 8.2…
Read more >