Like most great stories, the Royal Cup Coffee story has a humble beginning. In 1896, Henry T. Batterton made rounds in Birmingham, Alabama, selling coffee from his horse-drawn wagon. His company, Batterton Coffee Company, served coffee so fresh and flavourful that it was deemed fit for royalty. Because of its high-quality taste, it became known around town as a “royal” cup of coffee. Batterton Coffee Company experienced decades of success and growth, and established itself as a legitimate, thriving business in a small southern city. It wasn’t until 1950, after William E. Smith purchased Batterton Coffee Company, that the company was renamed Royal Cup Coffee. To this day, the Smith family still owns and manages the business. Over the past 100 years, Royal Cup Coffee and Tea has grown from its small, hometown roots to become a major importer, roaster and distributor of the world’s finest specialty and premium coffees and teas. Royal Cup’s reach extends throughout the U.S., Mexico and the Caribbean, serving customers in the food service, hospitality, office and specialty coffee markets. Their strong history is a big part of who we are today, but our company’s story still is being written. With appreciation and reverence, they acknowledge the past; with excitement and optimism, they work towards the future. Check out their video story and gain an insight into another great family business too.

For those involved in the management of the family firm beware that staying true to your roots can foster inertia when innovation is most necessary. Recent research has punctured the stereotype that family firms are staid and lacking in innovation. In fact, their cultural differences can be the source of a decided innovation advantage. But those same strong values can make it harder for family firms to find a new business model when the old one suddenly becomes a roadblock to success. Loyalty to the firm is a distinguishing family asset as this intrinsic quality gives owner-managers a competitive advantage in the long-term development of the business. But when it comes to business models, loyalty for the sake of loyalty can become a liability. Too much loyalty can limit success, since it can inhibit founders of family firms from adopting innovative business models until it is too late. The Ultimate Decline Of Laura Ashley A good case in point is the textile firm founded by Laura Ashley in 1953. Born in Wales in 1925, Ashley learned how to make clothes as a child from her quilt-making grandmother. As an adult, she made headscarves, napkins, table mats and tea towels that were adored by her friends and family. Her designs recalled her grandmother’s old-fashioned quality of life, where British women tended to the home and garden in serenity. It was an ephemeral lifestyle wedded to a country-of-origin effect. Ashley realised she had invented a business model that powered her exceptional rise to success. Ashley married an enterprising fellow who gave up his job in London to supervise the production of textile products printed with his wife’s designs. They moved the operations from their tiny flat in London to a large factory in Wales, employing staff at wages well above the average local salaries. The Laura Ashley brand quickly acquired a solid reputation as a premium fashion player, labelling all products “Made in Wales.” The business took off, providing employment opportunities to the couple’s four children. From a fierce loyalty to her Welsh roots sprang a business empire that enabled Ashley and her family to run a global network of 500 shops and employ 1,000 people by 1975. But in 1985, tragedy befell the family and the firm when Ashley died unexpectedly at the age of 60. It was a period when many of the firm’s rivals were beginning to outsource their production to countries on the periphery of Europe, developing major supply chain networks in Morocco and Turkey. At the same time, the exotic but far less costly garments being sold by its rivals opened up a completely new competitive environment for the Welsh firm. Some pundits even claimed that the “Laura Ashley look” was too British and was outdated. Women in the 1980s needed more assertive clothing in line with their growing status in the workplace. Following the death of Ashley, her husband and their children struggled to find a response to the changes in the marketplace. The core of their business model, however, was left untouched. In honour of their founder, they announced to their staff that both the manufacturing and logistics operations would stay in Wales. Yet within five years, the company was in deep financial trouble and an outsider CEO was hired in 1991, followed by a string of other CEOs. The family lost control of the firm after an Asian company became the major shareholder in 1998. The company is now nothing more than a licensing entity. This sad ending to a dream-come-true journey reflects the hardships any family business could face when internal and external roadblocks suddenly appear at the same time. To avoid such a fate may not be as difficult as most observers believe, however, if owner-managers institutionalise innovation in the core of their business model. Business Model Innovation At Zara Take the example of Zara, a fashion company founded in La Coruña in northern Spain, by Amancio Ortega and his wife in 1975. After 10 years of selling inexpensive garments throughout Spain, Ortega decided to institutionalise innovation in the firm’s business model. He believed he could beat the well-known brands like Laura Ashley at their own game by reducing lead times and quickly responding to trends. While remaining loyal to the employees who worked at his original factory, Ortega was careful not to make future investments for the sole benefit of his compatriots. He decided to open plants in neighbouring Portugal, as well as in Turkey and Morocco. Ortega connected the factories with a state-of-the-art logistics network. The rest is history. A highly responsive supply chain now ships garments twice a week to Zara’s 2,100 stores located in 88 countries. Furthermore, the creative process of designing new garments based on changes in fashion trends has been sped up to the point whereby the new designs on Zara’s drawing boards reach the stores as fully finished garments within two weeks. By not being too loyal to his operational geography while at the same time institutionalising innovation throughout the supply chain, Ortega transformed Zara from a fashion discounter into the world’s largest apparel maker, managing up to 20 clothing collections per year. In contrast to Ashley who was bound to her operations in Wales, Ortega decided to transform the existing design, manufacturing and distribution processes entirely. He demonstrated the value of breaking old habits and created an entirely new business model based on continuous improvement. This article was first published on the INSEAD website here and has been reproduced with their permission.

Arbikie Estate is a family-owned working farm perched on the east coast of Angus. Here, the crop is king and they painstakingly plant, sow, tend and harvest the fields that make up Arbikie. This is a family business where they are craftsmen of the soil and an estate profoundly shaped by its environment: the red sandstone-tinted soil, the powerful sea and the turbulent weather give Arbike a character found nowhere else. And here, situated where land meets sea, sits the distillery – created from an ancient barn, it is a place with all the ingredients required to produce authentic spirits of the highest quality. The family has been farming at Arbikie for four generations. From father to son, they have gained an intuitive understanding of the land, sowing and harvesting the crops that now create Arbikie’s range of field to bottle spirits. Farming in the Stirling family goes back even further – since 1660, initially on the west coast. Their lands passed through seven generations until great uncle Bill moved to farm at Arbikie on the east coast of Angus in the 1920’s. He then passed it to the grandfather of the current owners, John Stirling who expanded the acreage before passing the lands over to Alec Stirling. Brothers John, Iain and David are the visionaries and driving force behind the Arbikie Distillery. As with all farming families, the brothers grew up working around the farm, and It is this hands-on experience that gave them a deep understanding and respect of the land. Despite pursuing careers away from farming, they have always stayed attached to the family lands – and now with the opening and growth of the Arbikie Highland Estate distillery, they have returned to drive this exciting and continually evolving venture. Join Paul Andrews as he interviews one of the Arbikie directors, Iain Stirling, in understanding more about the values, purposes and drivers behind the business, and their role as custodians of the family firm for future generations.

Chase are a family owned, British field to bottle distillery, creating luxury spirits from their farm in Herefordshire. They set up the business in 2008 to challenge the status quo in the white spirits industry. If people are interested in the terroir for their wine or the barrel ageing for their whisky, then why shouldn’t they be interested in how their white spirits have been crafted? The business has become a family affair; with Will’s older sons Harry and James working within the business. Harry manages Chase Farm and farms 300 acres of potatoes which are grown on a 5-year crop rotation and James works as their Global Brand Ambassador educating customers and consumers about their field to bottle philosophy. This short film clearly shows the family business brand and values beautifully. Find out more at www.chasedistillery.co.uk

Have you tried to raise the subject of succession planning with your parents? How have they reacted? I am assuming from the fact you are reading this that it may not have had the result that you wanted. In this article, Russ Haworth provides food for thought and some ideas as to how to bring up the conversation around succession and getting Mum and Dad to talk about it. It may be that you have been met with some resistance to the idea, there are more important things to be worrying about than that. Is it the proverbial tin can that keeps getting kicked down the road? If so, read on. If you are one of the family businesses that have a well thought out and living succession plan in place, that’s awesome. If you would like to leave your own thoughts on how you have achieved that, I am sure those without would benefit from your experience. There are a number of ways in which you can try and get Mum and Dad to the table and different approaches will work for different people. As with anything related to family business, there is no best practice, no ‘off the shelf’ solution or silver bullet for this. However, I have summarised below some of my thoughts on what I have observed with the families that I have worked with and helped through the facilitation these discussions. Do You Know How Your Parents Feel? If you are someone who is looking to take on a leadership, management or ownership role in your family business, the prospect might be scary and exciting in equal measure, it may symbolise to you a progression that you have dreamed about for a long time. But do you know how your parents feel about it? Succession in a family business can evoke differing emotions depending on which generation you are in. If you are the rising generation, looking to take on a more senior management role, or stepping into a leadership role or taking on the ownership of the business you are likely to feel very different to those in the senior generation. For them it can be like asking them to give up a limb, their role in the business is part of who they are as a person, part of their identity. The leadership role they have helps them to feel accomplished and able to fulfil their purpose. The ownership is reward for their years of blood, sweat and tears in something that may even have been around longer than you have. So, whilst you may feel impatient, excited and eager to start these discussions, I would suggest the first step would be to try and understand what they are feeling about it. This is not easy, it is a discussion that invites us to talk about our fears, our emotions and it can be uncomfortable to do so. That often makes it easy to avoid, but each day that passes is another day closer to when the issue may be forced upon you by circumstance rather than choice and that in itself can lead to challenges. It may be easier for your parents to talk to someone who is not linked to the business, either someone who is trained and able to explore these issues with them, or someone they know who may have been through something similar. Understand What Might Be HEARD When You Say Succession In addition, be clear about what it is you are wanting to talk about. When you mention succession, is it clear what it is that you are trying to discuss? After all, it is a word that has a pretty broad definition. Dictionary.com defines it as: The coming of one person or thing after another in order, sequence, or in the course of events, or the right, act, or process, by which one person succeeds to the office, rank, estate, or the like, of another or the descent or transmission of a throne, dignity, estate, or the like. If you are talking about succession in terms of you taking on a management or leadership role (i.e. rank), is that clear or could your parents be hearing it as the succession to their estate? If they are hearing in that context, they may well be seeing that as you telling them that they are ready for the knackers yard, which may be a source of resistance. The phrase itself presents the idea of one thing ending and another beginning. All of the elements of succession will need to be dealt with, but some may be easier to tackle than others. For example, your parents may feel more comfortable discussing you moving into a leadership role, than you taking over the ownership of the business. If this is the case, start there. This may be the catalyst that leads to other discussions, remember this isn’t something that has to be done in one sitting. Succession Planning is a process, not an event. Presenting it a a process rather than an event may also help as very often it is perceived as an event. Let’s take the example of a change in ownership, to ‘complete’ a change in ownership there may need to be formal legal documents that need to be signed and invariably the signing of these documents can feel very much like an event. If this is how succession planning is seen, it can seem final and there will be a lack of motivation. If we look at a changing of roles in the business, there may be a specific date in mind for when you take over the Managing Director role from Mum or Dad, again this can feel like an event. Each of these events, however, are ideally the result of a carefully and sensitively managed process, that has explored all of the hopes, dreams, fears and concerns of all those involved. Starting the discussions around this is not the same as the event that makes any changes formal, but it can feel like that. Appreciating their views and showing empathy for how they may be feeling about it is a great way to encourage this as a collaborative process, rather than them feeling forced out of something they love and get great joy from (despite the tough days!). Emotion Trumps Logic Let’s face it, we all know that dealing with succession is going to happen at some point, be that through planning or in the event of the incumbent owner passing away or suffering an illness without a plan. Your parents know that too. I think most of us would agree that dealing with it via a planning process with the active participation of all, towards a common goal, is probably better than waiting to see what their Will says (if indeed there is one). So Why Is It So Hard To Start The Planning Process? We are emotional creatures, and whilst logic may dictate that we should have these plans in place, our thoughts and feelings put barriers and excuses in the way. This is also why many people don’t have a valid Will in place. They think that this means they are going to die. The two are not linked, however, dying with a Will in place is usually far better than dying without one. The planning process should bring peace of mind, if carried out well it will address all of the concerns of all those involved and so could be re-framed as a positive rather than a negative emotional experience. That is not to say that it is all sunshine and flowers, there will be difficult discussions, there may be some bumps in the road but with the right facilitation and attitude from all it can be far more rewarding than perhaps it is perceived. The Impact Of COVID-19 We cannot ignore the fact that we are living through a global pandemic at the moment. We are being faced with our own mortality and a hugely uncertain economic environment. Understand they might be scared, it may be really hard for them to admit that they are scared, but it doesn’t mean they aren’t. They may be scared about giving up control of something that has been a part of their lives for a very long time, especially at a difficult time. They may be scared for the future of the business and that passing that responsibility to you at the moment is not setting you up for success. They may simply be scared that you are not the right person or that there is never going to be the right person to take on their roles in the business. They may be scared about losing their identity. Imagine the feeling of going from Janet or John, Managing Director of XYZ Limited to ’just’ Janet or John. This can feel like a loss, and with any loss there is the need to go through a process of accepting that loss. Some are better than others at it, but acknowledging it is the first step in helping to overcome it. As well as a loss of identity in the business, it may also feel like a loss of identity in the family itself. If the process of succession planning is focused solely on the technical issues of ownership and control, there is a real danger that emotional aspects are being ‘buried’ and not discussed. I have seen the consequences of this. There are families who have spent a lot of time and money creating a legal or financial structure that looks great on paper, but when it comes to signing it, they have not been able to because it ‘doesn’t feel right’. Ignoring the elephant in the room does not mean that there isn’t an elephant in the room! Taking the analogy a step further, if there are issues around trust, loss of identity, loss of a sense of purpose and other emotional aspects to overcome, it can seem like a pretty big elephant. This may be the case, but the best way to eat an elephant (metaphorically of course!) is one bite at a time. Right, enough about elephants! The point here is that technical solutions are often needed to facilitate a succession plan, and these are based on logic, not emotion. It is often the emotional aspects of succession that need to be addressed before, or at least alongside, coming up with the technical solution. Is There Ever A ‘Right’ Time? I often hear that it just isn’t the right time to start succession planning and so it is something that is put aside until there is a right time. There is a Chinese proverb that states; “The best time to plant a tree was 20 years ago, the next best time is now” and for me, this rings true for the discussions around succession planning. That said you may well be met with the response “Is this really the right time?” What may be happening is that there are other underlying reasons as to why the discussions aren’t happening, but it is easier to say “now is not the time” rather than voice the real concern. It may be that there isn’t a sufficient level of trust that you are the right person to take the business on? Do you have the right skills? Do you have ideas that they are resistant to? Do you want to diversify the business and they want to maintain the status quo? What if you are more successful than them? It is likely that you will need to have honest and open discussions about these difficult scenarios. That may feel like volunteering to stub your toe! Why would you want to have those difficult discussions? Why would you want to hear or tell someone that you don’t feel that they are the right person for the job? It may be that you or whoever the successor is does not possess the right skills etc. but understanding that and being honest about that is the first step in overcoming that barrier. There are courses you can go on, qualifications you can get, mentors you can find to help overcome all of these, but understanding the issue exists is the first stage in addressing it. Preparing For Life Outside Of The Family Business People are living longer and more vibrant lives and so the concept of retirement can be really unattractive. Who wants to give up an active role in a thriving business with lots of interaction with people on a day to day basis to go and sit around doing nothing all day? Re-framing retirement as simply the next phase in their life can again help to start the discussions. Retirement can be a vibrant time, an active time where they can achieve the balance between their passions of work, the business and other interests as part of the process of handing over the responsibility There are lots of programmes, courses and literature available to help the next generation to prepare for life within the family business, but there is not so much available to those senior generation who are preparing for life outside the family business. Are they financially independent of the business? Do they know what this looks like? Have they spoken to somebody about this? Again, the financial dependency on the business can often be an excuse rather than a reason and there are ways to explore this to ensure that your parents feel financially able to reduce their dependency on the business. Emotional independence is harder and takes time but given that this is a process, that’s OK. One exercise that your parents could look at it to list out all of the positive emotions and feelings they have that are as a direct result of their role within the business. What emotional well-being does the business provide them with? By understanding this, you can explore how those positive emotions could be maintained outside of the business. Are there ways in which their purpose and identity can be maintained or even enhanced beyond their current role? Exploring their purpose and meaning beyond the business can be really exciting for them and open up opportunities that they may not have considered before, such as becoming a mentor to young entrepreneurs through a mentoring programme or college/university. Are there non-executive directorships that they could take on to help other businesses? Do they want to embark on a project to write or record the history of the family business? This could be an incredibly inspiring piece of work that can be cherished by generations to come. Succession Is A Process, Not An Event I have mentioned a few times that succession is a process and not an event. This however, is based on an assumption that some planning is done. It becomes an event as and when people either pass away or suffer a debilitating illness and at that point the process is typically driven by the legal system. This can lead to increased levels of stress and conflict in the family at a time when there is likely to be a lot of emotion around any way. So perhaps it could be reworded as, succession should be a process not an event but that is dependent on all those involved! None of us are immortal, none of us are immune to emotion and not all of us find it easy to talk about how we are feeling. There is help available though. Using a facilitator who is working for the family as a whole, rather than for an individual or for the business entity, can be hugely valuable in these circumstances. They will be used to having these discussions, used to hearing the fears and concerns and will be empathetic towards those feeling them. They are able to give everyone in the process a voice and create an environment that helps people feel heard and to explore their options. This will typically lead to far more meaningful discussions when it comes to the financial and technical matters that will need to be put in place to deliver a succession plan.

At Riboli Family Wines, they pride themselves in maintaining their core family values while also employing innovative techniques that will keep their legacy alive for generations to come. Each Riboli family member maintains a steadfast commitment to honouring not only the premiere craftsmanship of wines, but also their dedication to environmental sustainability and to the people that make up their family business. This is a story of a family legacy built on hard work, family values and a love for the land. An American Winery of the Year Winner, check out this short film that explains all there is to know about the family behind this award winning family business.

There is no ‘one size fits all’ approach when it comes to protecting family wealth, passing this to future generations in an appropriate way, and at the ‘right time’. Setting up a Family Investment Company (“FIC”) is increasingly a popular choice for successful family business owners as part of their broader succession and tax planning strategy. Planning with trusts has a significant role in protecting family wealth for future generations, however with limitations placed on the value which can be settled into trust this typically forms only part of a plan in which FIC’s increasingly feature. A FIC is a limited company like any other, but one which has been set up to manage and hold investments for the medium-to-long term benefit of future generations. They are typically funded by the founder transferring cash or assets by way of a loan, which are then invested by the FIC. On creation, family members and often family trusts are brought in as shareholders. The investments are usually equity portfolios or property. The founder shareholder generally maintains control over the investments and the payment of dividends, and invites other family members onto the board as appropriate. The Articles and Shareholders Agreement are drafted to protect the shares from sale outside of the family, making this type of structure more effective in a divorce or dispute. Profits and gains of a FIC are charged at corporation tax rates which are significantly lower than the equivalent income and capital gains rates charged on individuals . In addition, dividends received by the FIC may suffer no UK tax at all. The FIC is therefore very tax efficient where profits are being reinvested and the return on the investment can be significantly increased as compared to personal ownership. Rental profits also enjoy preferential treatment since companies can fully deduct loan interest against profits whereas this is now restricted for individuals liable to income tax at higher rates. The FIC shelters the investments from income tax until the company pays dividends and the savings can therefore be considerable. One of the main advantages of FIC’s are the Inheritance Tax (“IHT”) benefits. Once the FIC is set up, the increase in value is not part of the founder’s taxable estate. The initial capital can also be given away which (if survived by 7 years) reduces the founder’s exposure to IHT. As with any tax planning there are risks as tax rates and rules change. HMRC are also known to be reviewing IHT generally, potentially looking to impose lifetime tax charges on all gifts, which could include those within a FIC. Anyone considering this form of planning should therefore do so soon. The FIC structure is appropriate where the capital and income can be retained within the company for long periods, or indeed used as a structure to pass on to the next generation in the same way one would use a trust. What matters is establishing whether a FIC is appropriate for you and that it has been considered as part of your broader family wealth planning. About the Author - Lyn is a Corporate Finance Partner and Managing Partner of AAB’s Edinburgh Office and is the head of their Family Business team. Lyn has played a key role in the successful growth of AAB in the central belt thanks to her extensive experience in advising on acquisitions, disposals (including MBOs, MBIs), debt and equity fundraising, financial due diligence and valuations. She advises clients in a wide variety of sectors, including food and drink, technology, engineering, support services, professional services and IT.

Kingsbarns Distillery are proud to be a family-owned and operated company, which is one of their four brand pillars that are key to how they work. From place to process, people to passion, their pillars are the key elements that make Kingsbarns’ unique spirit. Every bottle of Kingsbarns single malt whisky begins with locally grown, Fife barley. Coming into the harvest season, they took the time to visit Bill Whiteford, one of the farmers that grows barley to be used in their whiskies, and capture this process of harvesting barley that will later go into their Kingsbarns whiskies. Using locally grown barley anchors their spirit to their place and they are proud to work closely with local farmers. Check out the story with Bill Whiteford, another multi-generational family farm in this fantastic film.

In a new survey of SME workers by Purbeck Insurance Services, 26% feel their loyalty to their employer has improved based on how their business dealt with the pandemic. Just 16% said they feel less loyal. The fact that 12% said they knew the boss had sacrificed their salary to prop up the business’s finances and a further 7% knew the finances of the business were being supported by personal savings may have contributed to these feelings. Keeping in touch via online conferencing tools may also have helped keep staff in touch but close to a third (29%) want to ditch the technology as soon as the pandemic is over. When asked about what other the actions their business has taken to deal with the pandemic, 31% said their business had used the Furlough scheme, 18% had cut workers’ hours, another 18% said there had been a reduction in headcount. In addition, 17% had used a Government loan scheme and 13% confirmed they had cut back on their workspace. However over 1 in 3 SMEs (36%) has taken none of these actions. Whilst the unemployment rate is expected to hit 7.5% in 2021, its highest level since the financial crisis in 2009, 38% of the workers surveyed confirmed they feel positive about the year ahead. This left 48% unsure about their job prospects and career progression going into 2021 and 14% feeling quite negative. As many businesses have relied on video conferencing, workers have a love/hate relationship with tools such as Zoom. 29% want to kiss goodbye to online conferencing tools once the pandemic is over while the same 29% think they are here to stay, providing a time efficient way to get things done and agreed. The survey also found that 30% have enjoyed the interaction while 31% felt they have been essential to keep in touch with colleagues and customers. Todd Davison, MD of Purbeck Insurance Services said “The owners and directors of small and medium sized businesses across the UK should feel proud of how they have dealt with the unprecedented challenges created by the pandemic. Despite the immense financial pressures many business owners have faced, particularly those that are shouldering huge risk by acting as personal guarantors for business loans, they have managed to boost staff loyalty through their handling of the crisis. The jury is, however, out on video conferencing. Love it or loathe it, with working from home likely to become permanent for many people it looks like our Zoom days are far from over.”

Founded in 1905, Bridge of Weir Leather Company is a privately owned Scottish Company operating one of Europe’s largest leather production facilities. Historically, the Bridge of Weir roots can be traced back to 1758, seven generations of family involvement in leather manufacture. Throughout, they benefited from Scotland’s advantages of an indigenous skills base, prime beef herds and a plentiful supply of soft, pure water. Bridge of Weir Leather Company is the UK’s only leather manufacturer for the automotive industry, and as part of the Scottish Leather Group operates one of the largest tanneries in Europe exporting to over 60 countries around the world. Bridge of Weir has been at the forefront of innovation and quality for over a century. Where there have been major advances in motoring, furniture or travel, Bridge of Weir leather has played its part. Only the finest hides sourced from the best heritage breeds are used and generations of hand-finished craftsmanship create a unique alchemy resulting in the finest Scottish leather. Check out the film behind this family business manufacturer and see the history and heritage unfold.

Many of Germany’s predominately family-owned Mittelstand businesses are likely to come under the hammer over the next ten years presenting a boom in mergers and acquisitions in Europe’s biggest economy. But these businesses will need help to navigate the sales process, says an M&A specialist Harald Link. The post World War Two economic boom in Germany gave rise to many mid-sized family businesses as well as seeing existing businesses flourish. Many of these businesses are today dealing with succession issues and question marks over how they can continue to grow in a world economy dealing with unprecedented disruptive forces. Some will adapt through innovation driven by the next generation of owners and continue to grow as family businesses, but others will see an opportunity to sell, or at least bring in outside capital to accelerate their growth efforts. “Germany’s family businesses will look to find an internal solution to grow their businesses, but if that isn’t found and succession presents a problem then they will look to sell the company,” says Harald Link, who runs an M&A specialist consultancy in Hamburg and works with many of the country’s Mittelstand businesses. “A trade sale is the preferred option, then followed by a private equity or family office sale. The least preferred option is to go public through a listing,” says Link. The sale of the Wirtgen Group in 2017 to US company John Deere is perhaps an example of this trend. Wirtgen, a construction machinery group based in a town called Windhagen, south of the city of Cologne, is a good example of a family-owned Mittelstand business that grew rapidly after it was founded in 1961. Facing succession issues and an offer too good to refuse, second generation owners Stefan and Jürgen Wirtgen decided to move on to other opportunities and sell the business. Other businesses are likely to sell to often foreign buyers looking to gain access to German businesses like Wirtgen, which is a specialist in making high-quality road construction equipment. “Buyers from places like the US and China want these businesses technology,” says Link. Others will look to sell minority stakes to bring in outside capital and expertise in an effort to grow their businesses, but to remain in control. An example of this trend is Ottobock, a family-owned prosthetics company based in Duderstadt in the middle of the country, which sold 20% of its equity to Swedish private equity group, EQT, last summer. Private equity groups and family offices are particularly looking to do deals in Germany, says Link. “Right now a lot of music is playing in this area.” Link together with Ulrich Hemel, a prominent German entrepreneur, economist and theologian, who has worked with many of the country’s family businesses, has written a book in German entitled: Zukunftssicherung für Familienunternehmen Beteiligungen, Verkäufe, Übernahmen (Securing the future for family businesses: participations, sales, acquisitions). The book offers a guide for the country’s family businesses on how to navigate the next steps on their business journey, which could involve their sale. “The many options open to family businesses also presents them with a challenge,” says Link. “These businesses often aren’t equipped to deal with issues like selling equity to outside buyers. External consultants also use their own jargon, making decisions often difficult for these businesses. This book is designed to provide a guide specially tailored to family entrepreneurs.”

Caribbean Blinds UK Ltd are a UK manufacturer of luxury external shading systems from stylish patio awnings that provide instant shade and shelter, to innovative external blinds that offer unbeatable solar heat and light control and an award winning louvered roof Outdoor Living Pod that provides year round use of the outdoor space whatever the weather. Paul Andrews spoke to second generation Managing Director Stuart Dantzic to find out more. When was the business founded? The company was founded as a limited company in 1987 however it was formed back in 1973 as a non limited company. How did you get involved? I was always helping out in the Summer months to earn some pocket money with my roles ranging from sweeping the factory floor to doing some filing. As I got a bit older I was helping with assembly along with taking calls and answering queries. Whilst I was at college, I still worked part time in the business so I had some beer money for the end of each week but I really enjoyed being involved too. Back in 2001 when my parents said they were moving from a rented factory to purchasing a factory in Sudbury as the business was growing I was excited and I wanted to be part of the journey, and the rest, as they say ‘is history’. What did you want to be when you grew up? A lawyer. There was something about being all suited and booted and commanding an audience (jury) in a court room that was very appealing. Whilst I didn’t progress this career path, my favourite programmes and films are typically always lawyer related. What are your first memories of the family business? Aside from the nice yearly holidays which were a result of the business being a success and my parents hard work, I first remember the company when we were based in Hedingham. I remember sitting in my mums office, which was the second door on the right up the corridor and helping out on the Amstrad computer – I can’t remember what I was doing, probably typing something up for her. I do remember the distinct smell of smoke as these were the days when smoking was not prohibited inside of buildings. What values are important in your family/family business? We have to meet or exceed (ideally exceed) clients expectations, every single time and to do this we have solid values based around honesty and integrity. We don’t over promise and under deliver. We provide sound, honest, expert advice to ensure clients make an informed decision and subsequently have the right solution, first time, every time. What is the best thing about being a family business? You’re all working towards the same goal and it’s not all about money. Yes the money helps but you are building a brand, after all it’s your family name and reputation that is on the line. And the worst? I don’t think you every switch off. Even when I meet up with my brother socially, we talk about work. But this is because family businesses are passionate about what they do and are continually striving to improve. What is the best thing about your working day? There are two things, sorry I couldn’t narrow it down to one! First is seeing the site installation photos on the company intranet from our teams of completed installations – it’s great to see the end result of our products and the subsequent positive reviews. The second, and I’m sure many people will agree with me, is success and I’m using this broadly as it can be winning projects, seeing new products we’ve invested in gain traction or simply seeing a happy team when I come into the office and/or the factory – this gives me the most satisfaction. What is your proudest family business achievement? This would have to be when I set up what we refer to as the ‘projects division’ which is the direct arm of the business. This was set up due to a reduction in trade sales following the 2008 recession and targeted architects to incorporate our products into their schemes along with discerning homeowners and businesses direct. Within 5 years of setting this up it was generating more turnover than our trade supply and continues to, to this date. Winning the Suffolk Business Awards Young Business Person of the Year last year (2019) was great too as it recognised what the company has done since I took the reins, doubling turnover in such a short space of time. Is there a next generation waiting in the wings to take over? No, we’re some way off that yet, having just taken the reins ourselves. I would like to think however that the company will still be in the Dantzic family for many years to come. What do you see as the biggest challenge facing family businesses? As a family business we offer value, and I think most family businesses do. Many businesses are looking to make as much money as quick as possible and will sell at lower margins to create volume and then move onto something else, so I think the biggest challenge is competitors underselling and undervaluing products and services. What words do you associate with family businesses? This could be a long list so I will pick just three: Knowledge – family benefits from years of experience, passed through generations Passion – family businesses love what they do and this runs throughout the business Integrity – family businesses grow by their honest, ethical approach – it’s their family name after all which is their reputation and as the business is always looking to the long term, protecting this and ensuring it is known for the right reasons are paramount. Words of wisdom – What piece of advice would you pass on to someone thinking about joining the family business? Make sure (a) you are doing it because you enjoy the business and what it does and not just because your parents want you to join and (b) make sure you get involved in every single element of the business so you know how it truly functions and operates – not only will this enable you to help take the business forward but it will gain the respect of all employees. Find out more at www.cbsolarshading.co.uk or watch Stuart who shared his views as part of our Family Business Insight series here