BDO: Significant company succession risks in the domestic SME segment

By: Trademagazin Date: 2022. 11. 21. 08:34

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.

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