In 1994, a family business was founded by its patriarch, starting with just three employees to build electrical switchgear and energy distribution systems. Entrepreneurial thinking was instilled in the founder’s children from an early age, as he frequently discussed business matters at home. When the founder’s sons took over the company, the transition was made smoother by the fact that the employees were already familiar with them. This familiarity facilitated a quicker acceptance of their decisions compared to what might have occurred with an external manager.
The new leadership believed it was important to maintain an “outside perspective” during the transition, ensuring they did not assume that everything should continue as it had. They emphasized the need for the older generation to accept the decisions of their successors, even when those decisions differed from their own, a process that inevitably led to tensions and challenges within the family.
Key to the successful transition were the advisors they consulted, particularly their notary, who played a central role in providing valuable ideas and asking the right questions. However, they were somewhat disappointed with their tax advisor, who lacked sufficient knowledge of the complexities involved in a company takeover. Another significant issue the family faced was navigating the relationships among siblings, especially when not all were directly involved in the business. After careful consideration and sound advice, they chose the route of early inheritance, which helped clarify roles and responsibilities.
Before officially taking over the business, both brothers gained valuable experience in other companies and industries. One worked at Daimler and the University of Rostock, while the other joined a major network operator. These experiences allowed them to carve their own path when they eventually assumed leadership of the family business. The takeover process began in 2016.
By 2018, the business transitioned from a sole proprietorship to a GmbH (limited liability company), and by 2020, the brothers had completed the formal succession process. During this period, their father gradually stepped back from daily operations, though he continued to offer occasional support. Under the new leadership, the company underwent significant changes, particularly in its communication culture. Weekly meetings with key employees were introduced to foster greater involvement in decision-making processes. Admitting their own mistakes was also seen as crucial to building a collaborative work environment.
The brothers introduced distinct departments within the company, each with responsibility for specific areas, a marked departure from the founder’s management style, where even minor procurement decisions required his approval.
