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Lecsómérnökök Gazdasági Blogja

Lecsómérnökök Gazdasági Blogja


RIP 70 % ?!?

Father, mother, and family business, and the share transfer form on the table

2024. április 09. - lecsós

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We write in English at your request.

We arrived to a new era in Hungary. We have a problem. The great generation wants to retire. Father and Mother want to pulls out the share transfer form from the drawer. They want to handover the responsibility. But we have a problem. The corvinusonline.blog.hu wrote about if father and mother hand over the company to the next generation, only 3 companies out of 10 survive the first year after the company handover.

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It means, 70% handed over companies are going to bankrupt by the end of the first year! Which is a lot! Let’s see the numbers! – KSH – Hungarian Statistics Agency, in Hungary there are 11 749 companies, and self-employed in field manufacture of food, beverages, and tobacco production. Let’s say 5 000 companies have a problem with the generation hand over. It means, 5 000 company owners sign the share transfer form. It means, after one year, out of this 5 000 companies only 1 500 companies - 3 500 companies went bankrupt. If this was the case, it would be seriously visible in GDP! This must be prevented!

Let’s be more specific!

Mother and father don’t want to hand over the responsibility. Mother and father want to secure the children’s, and grandchildren’s future! This is a little bit different questions, than they want to hand over the responsibility. But what the children, and grandchildren want? The answer is simple. Maybe they want to work for the company, maybe not. The children and the grandchildren want to have reasonable, spendable free net. monthly cash-flow.

This means, that the family has a challenge! A serious challenge! This question is the following:

How can I – as a company owner – acquire and integrate the knowledge what we need to achieve the right impact? Where can the knowledge come from? What knowledge do we even need in this position? A change of perspective may be needed?

As a Food Engineer M. Sc., for example, I can help by reviewing the company's operations, determining the real costs of production, looking at quality costs, etc., in order to we present with the team a good operational plan to the decision-makers.

Does your company need food engineering expertise in areas such as product design, production, quality, costs or export planning?

If so, contact us!

lecsomernok@gmail.com

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