Who can help

There are numerous organizations involved in business transfer issues, i.e. ministries, tax administration, enterprise associations, enterprise agencies, lawyers, banks, insurance companies, chambers, private consultants, cities, municipalities, etc.

Some examples are given here (see also theseus.fi):

National: The Federation of Finnish Enterprises: support for members: membership services; Enterprise marketplace (Business Exchange, Yrityspörssi) for buying and selling enterprises

National: Enterprise Finland (Ministry of Economic Affairs and Employment): see services

National: Perheyritysten Liitto: coaching for family successors

National: Finnish Business Transfer Society: advice and councelling for business transfers, business value determination calculator for basic value evaluations, links to business marker places

National: Centre for Economic Development, Transport and the Environment

Regional (member of the Federation of Finnish Enterprises) Satakunnan Yrittäjät: services only in Finnish, but in a nutshell: advice on selling and buying,  advice on procedures for enterprise ownership change, advice on taxation and value determination, further contacts to other expert services; Regional enterprise marketplace for selling and buying enterprises.

Regional: Prizztech Ltd: services include: counselling those who are planning to continue an existing business, directing to experts, making an action plan, consulting a tax adviser

Private franchising chain: Finnish Company Acquisition Ltd.

Cases from Finland
Transfer description In this case the founder had children, but none of them nor other closepeople were willing to continue the business. Company was more or less for sale for years, but without success. The price required was not – according to professional business developer – in line with the opportunities of the business (At the time business became for sale the interest was mostly set on first mobile services and solutions). The sales announcement was given, among the other market places and business dealers, also to Mr. Kimmo Saaristo, Business Transfer Coordinator of Satakunnan Yrittäjät. Mr Petri Hohtari, on his part, had filed his data in the site collecting the information of persons interested to acquire an existing business and / or company. Soon after that Pori Enter, the municipal business service of Pori district, contacted Mr. Hohtari and directed him to Mr. Saaristo, who had a number of considerable businesses to be presented. From a portfolio of potential companies three companies were selected for closer review. Mr. Hohtari found Panelian kone to be the most interesting of these and negotiations started. The negotiations took one month and leaded to agreement satisfying both participants. Finally, it was found a successor who agreed to buy the company – if the founder would stay for certain period in company to guarantee the continuum and transfer the tacit knowledge. The company has grown measured in both number of employees and turnover, and the former entrepreneur is now retired. As a lesson of this case Mr. Hohtari emphasizes the importance of professional and reliable expert with long experience in business transfers to be involved in the case. Facts   Previous Current Owner Matti Eskola (majority) Petri Hohtari (majority) Legal form of thecompany Ltd Ltd Number of employees 9-11 35 Brand Model of transfer Involved institution Country Engineering 2 – Transfer to one or more external (person/subject) Business Service Enter (Now part of Prizztech Ltd) contacted by acquirer.Business Transfer Services of Satakunnan Yrittäjät,contacted by bothparties. Services were free, and only potential extra costs were invoiced.The service was limited to get parties in contact witheach other. In thenegotiating and contractingphases an experienced expert could havebeen helpful. Finland Reported by Kari Lilja and Sirpa Sandelin […]
Transfer description Original company was founded in 1980’s by one entrepreneur. In the end of 80’s the company was growing and another person was joined to the company as minor owner. The reason for this was – as was found out later – that to be able to arrange the funding – the company needed a person trusted by bank to guarantee the loans. In August 1991 Finland collapsed to the greatest depression ever and this company went into liquidation too within the wild period of 1991-1993. To be able to pay the debts caused by loans he had guaranteed, the former minor owner founded the new company, which bought the business and tools and equipment needed from bankrupt estate. The main bank of former company agreed to finance the new business, given that the former major owner was not in any part involved in new business. The company grew up, both in turnover and personnel, and both the debt caused by bankruptcy and the new loans became paid off. As the years passed by, the entrepreneur got older and finally it was his turn to retire. Unfortunately, he had no relatives nor other close persons willing to continue. However, a few years before he had hired a capable man with good relationships to heavy industry, and after long negotiations, the business and the name were sold to new company founded by this employee. Funding of the deal was arranged with the help of the relationships named above, and via that way the company also got another branch, becoming one of the biggest operators in Finland in both of its branches. Lesson to be learned from this case is that sometimes the succeeded business transfer requires hard decisions, even bankrupts, not to get out of debts, but to clean up the reputation. Facts Previous Current Owner Majority and minority After first 1, after 2nd 2 Legal form of the company Ltd Ltd Number of employees 3 After first 4, after 2nd 6 Brand Model of transfer Involved institution Country Engineering 2 – Transfer to one or more external (First) 4 – Transfer to a cooperative to employees of the company (Second) Bank who agreed to continue with new company, although the rate of interest was higher, new auditor and bookkeeper, In the second transfer in addition to bank, auditor and bookkeeper, the new co-operation partner had a big role. Finland Reported by Kari Lilja and Sirpa Sandelin […]
Transfer description Transfer took place since the founder of the company, Mr. Mati Vetevool felt that it’s time to step give main responsibility to his son. This didn’t, by any chance, mean that he cut off completely from running a business, but Mr.Mati Vetevool took the role of CEO and Meelis Vetevool became Chairman of the board. It was easy to find a successor since the son had been actively working in the company alongside his father. Therefore, the transfer process was very dynamic. Next to the son, also the grandson is working in the company and this should guarantee the long-term sustainability for the company. When the entrepreneur and owner of the company, Juha Hallamaa, died suddenly and unexpected in December 2007, were his daughters 19 and 22 years old and still studying. Although the situation was a shock both to sisters and to their mother, the decision was made quickly and in the next morning both sisters were together at the works telling that they are going to continue the work of their father. Telilän Sähkö was founded in 1956 by Mr. Erkki Telilä who run the business more than 20 years. In 1977 the legal form of the company was changed and in 1978 it was transferred to Erkki’s son, Mr. Sakari Telilä. In 2008 took Sakari’s son Mr. Pekka Telilä responsibility of business as CEO of Telilän Sähkötyö Ltd. Mr. Pekka Telilä was the first entrepreneur in Generational Replacement Program of Satakunta University of Applied Sciences. His father Sakari Telilä had planned to retire. It was clear that Pekka would be the owner in near future. The company, Telilän Sähkötyö Ltd, had also future challenges for growing up as a national and international company. Pekka had planned his studies with teachers of his core subjects and with the mentor from the faculty of Technology and Maritime Management bearing in their minds the future entrepreneurship. A cooperation contract with the Enterprise Accelerator was signed when Pekka still was studying. He spent the academic year in Ireland as an exchange student studying electrical engineering, business management and English. The Bachelor’s Thesis of Pekka was related to the generational replacement in Telilän Sähkötyö. He graduated and became an electrical engineer. During his studies Pekka and his father had pondered the essential business activities with the mentor and a couple of experts from Enterprise Accelerator. It was considered that Pekka’s challenge was to expand the enterprise activities and to make international contacts. Pekka and his father Sakari decided to make diffusion for the company. Pekka took on his responsibility the electric contracting under the name Telilän Sähkötyö Ltd and Sakari runs new company Kiinteistö Telilä Ltd which owns and develops the facilities. Telilän Sähkötyö Ltd has grown by acquiring other electric contractors and developing new competence areas like building automation, weak current and solar power. Facts   Previous Current Owner Sakari Telilä Sakari Telilä: Telilän kiinteistöt OyPekka Telilä: Telilän Sähkötyö Oy Legal form of thecompany Ltd Ltd Number of employees 23 45 Brand Model of transfer Involved institution Country Electrical contractor 1 – Family transferLegal model: Diffusion Generational Replacement Program of Satakunta University of AppliedSciences Finland Reported by Kari Lilja and Sirpa Sandelin […]
Transfer description Transfer took place since the founder of the company, Mr. Mati Vetevool felt that it’s time to step give main responsibility to his son. This didn’t, by any chance, mean that he cut off completely from running a business, but Mr.Mati Vetevool took the role of CEO and Meelis Vetevool became Chairman of the board. It was easy to find a successor since the son had been actively working in the company alongside his father. Therefore, the transfer process was very dynamic. Next to the son, also the grandson is working in the company and this should guarantee the long-term sustainability for the company. When the entrepreneur and owner of the company, Juha Hallamaa, died suddenly and unexpected in December 2007, were his daughters 19 and 22 years old and still studying. Although the situation was a shock both to sisters and to their mother, the decision was made quickly and in the next morning both sisters were together at the works telling that they are going to continue the work of their father. The labor understood the situation and the strong commitment between company and workers strengthened even more. The production manager took operative responsibility and sisters, realizing that they were unexperienced as entrepreneurs, started the search of new CEO with help of head hunting company that knew their father and company and had an idea of what kind of person was searched. After three months a new man was at the helm. Both of sisters had vocational level education in business administration, and straight from the beginning of new situation they took care of administrative routines with the help of bank, bookkeeper and insurance companies, as well as customers and suppliers, all those were understanding and patient in the situation. Everything was new for sisters, although one of them had been working in the company few summers, thus they had to learn all. And much was learned from mistakes. New CEO proved to be a man at his place. His experience and knowledge were at great help, although he didn’t have experience of entrepreneurship. At the moment both sisters are working in the company, one is CEO and the other Chairman of the Board, the former CEO who was hired after father’s death, is a Member of the Board and the business is going on. The company has also ridden out the storm caused by biggest customer who closed its works in Finland – turnover was cut off with 50 % but is now step by step reaching the former level. Lesson learned from this case is that with open mind, strong will and reliable partners everything is possible. Facts   Previous Current Owner Juha Hallamaa Widow and 2 daughters Legal form of thecompany Ltd Ltd Number of employees 11 14-15 Brand Model of transfer Involved institution Country Engineering 1 – Family transfer Bank, Insurance companies, bookkeeper, workers, customers and suppliers headhunting company Finland Reported by Kari Lilja and Sirpa Sandelin […]
Transfer description This company had in its history two stormy transfers. The first transfer in the 1930’s was close to fail: The founder of the company did not trust on his son and sold majority of shares outside the family. Piece by piece son succeeded to collect them back. The second transfer during the end of 1960’s and beginning of 1970’s was technically uncomplicated operation, but the problem was that it was difficult for father to transfer the responsibility to his son. Third transfer was executed step by step in the beginning of 1980’s. First step was to double the share capital. New capital was subscribed by sons, Tom and Stefan, who now owned 50 % of the company. A few years later company bought its own shares from Tor Brandt, his wife and daughter. Finally, Tom and Stefan owned the company 50 / 50. The earlier transfers had been complicated, characterized by the confidence gap between fathers and sons, and this transfer had its figures too: Father, Tor Brandt, was seen in the office almost daily even in the end of 1980’s. Corporate had two product lines, consumer products and industrial products. One brother was responsible for consumer business and the other for industrial business. Both brothers developed their parties, but it was not enough that products and customers were very different from each other. That were the brothers too. And furthermore, both brothers had children some of them were willing to continue the business. Dividing of the corporate had been planned for long time, but diffusion would have cost a lot in the form of taxes to be paid. Finally, the Limitedliability Companies Act was changed, and tax-neutral diffusion became possible. At first, the value of each business was balanced by group support, then the group was divided into two groups, both owned by brothers in 50/50. The last phase was to change the shares and now both brothers owned their own business alone. After that there has been another business transfer in industrial group, known as Brandt Group Ltd, the first without any problems in juridical or personal relationship level. Group is now managed by 4th and 5th generation together. In the former consumer division, Oy Otto Brandt Ab Ltd the transfer from 4th to 5th generation is still ongoing. We have learned that the relationships between generations are not always uncomplicated, but the transfer will succeed if it is well planned. Facts   Previous Current Owner 3rd transfer: Tor Brandt > Tomand Stefan Brandt 4th transfer: Stefan Brandt >Stefanie Brandt (Ongoing)Tom Brandt > Jesper Brandt andCharlotta Furuhjelm Legal form of thecompany Ltd Ltd Number of employees 400 400 Brand Model of transfer Involved institution Country Diversified 1 – Family transfer Banks, Auditor, Legal Consultants Finland Reported by Kari Lilja and Sirpa Sandelin […]
Transfer description Sampo-Rosenlew Ltd was founded in the beginning of 1990’s by Mr. Timo Prihti to continue the Combine Harvester production which otherwise had been shut down by Metso Plc. Mr. Prihti found soon that one product is not enough and started engineering and manufacturing of forest harvester. Furthermore, contract manufacturing of components to other engineering companies as well as engineering and manufacturing of industrial parts washing machines became as third and fourth branches of the company within the 1990’s. Within the next decade the hydraulic motors and rotators were included to the portfolio of SampoRosenlew group by acquiring Metso Hydraulics Ltd which got a new name Sampo-Hydraulics. Mr. Timo Prihti’s son Mr. Jali Prihti had worked in the company from late 1990’s and it was clear that Jali would follow his father as entrepreneur. The arrangements were started in 2003 when Metso-Hydraulics was acquired and Mr. Jali Prihti became minority owner of Sampo-Hydraulics. After that a new company, which took responsibility of subcontracting business, was founded. A few years later the diffusion was done, and Sampo-Rosenlew Group was divided into two parts: Sampo-Rosenlew Ltd, which takes care of the production, and SR-Kiinteistöt Ltd, which owns and rents the facilities. Mr. Jali Prihti got majority of shares but Mr.Timo Prihti retained the right to vote and the right to certain part of dividend. Mr. Jali Prihti’s part of dividend enabled the payment of legacy duties. The change in the operative management was realized in 2009 when Mr. Timo Prihti became as the Chairman of the Board, and his son was nominated as the CEO of Sampo-Rosenlew Ltd. At the moment Mr. Jali Prihti is both the CEO and the Chairman of the Board and Mr. Timo Prihti is the Member of the Board. Mr. Prihti has also another child, daughter, who is not interested in the business. The equality between two heirs was borne in mind during the arrangements. The lesson was that most important in transferring the business to the next generation is to plan it well, start it early enough and to realize the plan consistently. Timo Prihti retained the right to vote and the right to certain part of dividend. Mr. Jali Prihti’s part of dividend enabled the payment of legacy duties. The change in the operative management was realized in 2009 when Mr. Timo Prihti became as the Chairman of the Board, and his son was nominated as the CEO of Sampo-Rosenlew Ltd. At the moment Mr. Jali Prihti is both the CEO and the Chairman of the Board and Mr. Timo Prihti is the Member of the Board. Mr. Prihti has also another child, daughter, who is not interested in the business. The equality between two heirs was borne in mind during the arrangements. The lesson was that most important in transferring the business to the next generation is to plan it well, start it early enough and to realize the plan consistently. Facts PreviousCurrentOwnerTimo Prihti (majority)Jali Prihti (majority)Legal form of the company LtdLtdNumber of employees 400400 BrandModel of transferInvolved institutionCountryEngineering1 – Family transferAuditorFinland Reported by Kari Lilja and Sirpa Sandelin […]
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