Preparing and organizing executive succession for the second generation of a family-owned mid-cap specializing in financial services
Challenge: Preparing for succession
Service: Leadership Consulting
A family business with 500 employees, specializing in financial services, and a leader on its market.
Based in France with a subsidiary in Spain.
The Director who had successfully founded, developed and led his business for more than 20 years, supported by a loyal team, wanted to retire.
Several potential successors had emerged, including the Director’s children.
Eurosearch & Associés involvement
Eurosearch & Associés was contacted to prepare and organize this leadership succession, which took place over several years:
- We analyzed the strategic plan, taking into account changes in the business model, which was moving towards a new sector offering better prospects for growth
- We gained an understanding of the family situation, and discussed the financial and fiscal implications of succession with the Director, as well as emotional aspects to determine whether this was the right time to go ahead with the succession
- Management audit: we assessed the ability of the existing Executive Team to accept and implement the new strategic plan (competencies, motivation).
- We proposed changes to business activities, organization structure, and executive and management boards, to reflect the new business model.
- We put in place a new Executive Team through internal promotion and by bringing in outside competencies
- We identified the most suitable successor
- We submitted our proposal to the Director, who agreed to it
- We prepared the new Director, mentoring him, keeping in regular touch and planning professional development to ensure he was prepared and accepted as being suitable to lead the company
The executive succession was carried out successfully:
- The new Director and his leadership team are still in place after a number of years
- The founding Director has become Chairman of the Supervisory Board
- Today, the business is the European leader in its field
- The new strategic direction was a success: the company has expanded overseas with operations in around 10 countries. The company moved from an exclusively French business sector to a new Europe-wide business environment. The innovation strategy was effective, leading to the creation of new products
- The company has expanded and now employs 1,500 people