Succession in a family company: How not to lose contact with children

Why 6 out of 10 successions end in a quarrel at the Christmas Eve table?

Most company owners in Poland, who founded businesses in the 90s, face a wall today. The problem does not lie in the lack of a will or the bad construction of a limited liability company. Statistics from our last 42 mediations show that conflicts break out when the founding father tries to steer the company from the back seat, even though he formally handed the reins to his daughter or son. Children in turn feel pressure to prove their worth, which breeds tensions lasting for years. We talk specifically about numbers: one unresolved competence dispute can reduce the operational margin by 14% in just eight months.

We often encounter a situation where a successor wants to introduce a new CRM system, and the founder blocks it because he believes that the previous Excel spreadsheet was enough for 19 years. This is not a dispute over technology, but over recognizing authority. At Arka Przymierza, we analyze such situations in terms of communication risk. We don't judge who is right, because in a family business right is a fluid concept. All that matters is whether the company survives another quarter without decision-making paralysis, which hits a 12-person team of employees waiting for clear instructions.

Succession is not a one-time signature at a notary, it is a psychological process lasting at least 14 months.

Communication risk audit in 18 days

Before we sit down at the mediation table, we conduct a quick audit. It usually lasts 18 business days and consists of individual conversations with each board member and key successors. In October 2024, we examined the case of a transport company from Mazovia, where a lack of clear hierarchy caused drivers to get conflicting guidelines from father and son. The audit result was clear: 27% of management work time was wasted on explaining internal misunderstandings. This is a real loss that can be converted into concrete zlotys.

Our audit is not a theoretical essay. It is a sheet with specific flashpoints. We indicate exactly in which moments boundaries between home and office blur. If talks about invoices start on Sunday at 2:15 PM during dinner, it's a sign that the management system has stopped working. At Arka Przymierza, we then set rigid time frames for operational meetings. Discretion is our standard, not a promise, which is why all audit results are available only to people directly involved in the succession.

Separating the wallet from emotions

The most difficult stage is determining what are private assets and what are company assets. In small and medium-sized companies operating since 2012, these two spheres often overlap. Our role is to surgically separate sentiments from hard financial data. When we conduct mediations for partners who are family, we impose a rule: no adjectives. We don't talk about someone being 'irresponsible'. We talk about the payment term of 14 invoices being exceeded by 9 days. This calms emotions and allows returning to talks about the company's future.

We close disputes, we open businesses. This slogan accompanies us in every succession project. If a successor feels treated like a child, and not like a business partner, the share transfer transaction will always be on the edge. We save transactions on the edge by introducing a communication contract. It is a 3-page document that specifies who makes the final decision in purchase matters above 35,000 PLN. Such a solution in 8 out of 10 cases ends daily quarrels over small expenses that destroy family relationships the most.

In family business, adjectives are fuel for conflict. Data is a fire extinguisher.

The role of the mediator in the process of handing over the reins

As a risk analyst, Beata Kowalczyk often repeats that a mediator is like a technical referee on the field. We don't score goals, but we ensure no one fouls. During mediation sessions, which usually last 3 to 5 meetings of 4 hours each, we work out a plan for the founder to exit from day-to-day management. This doesn't have to be a sudden cut. We can agree that for the first 6 months the founder retains a right of veto only in matters of investments exceeding 120,000 PLN. The remaining 91% of operational decisions pass into the hands of the children.

Many of our clients from Warsaw and the surrounding area fear that a mediator is another advisor who will leave them with a thick report and zero concretes. We act differently. Every meeting ends with a note with a division of tasks for the coming 14 days. If the plan assumes that the son takes over contact with 8 key suppliers by the end of March, we check if it happened. If not – we look for a communication block. It often turns out that the father simply forgot to hand over system passwords or phone numbers because he subconsciously did not want to give up power.

Specific numbers and dates

Succession carried out under the eye of professionals from Arka Przymierza shortens the time of uncertainty in the company by about 5 months. In a typical process that we conducted for a construction wholesaler in 2023, we managed to reduce the number of board meetings from 12 to 4 per month, with a simultaneous increase in decision-making by 32%. Employees stopped asking two people the same thing because they knew that from 9:00 AM to 5:00 PM the new president decides, and the founder plays an advisory role only on Thursdays between 10:00 AM and 1:00 PM.

In summary, succession is a test for family durability. If you feel that every conversation about the company ends in silence at dinner, it's time for an external mediator. Don't wait until the dispute paralyzes the company's bank account. The first consultation with us lasts 45 minutes and allows assessing whether your conflict can be solved at the table or requires a deeper audit of the structure. Remember that saving transactions on the edge is our specialty, but it's better to start talks when the edge is still far away.