Hard to Let Go: A Perspective on Family Business Succession Planning
In a compelling discussion in Nine O'Clock magazine, Adrian Florea, MABPD, EMBA, Executive Director Concelex, sheds light on the complex dynamics of succession planning in Romanian family businesses. Drawing from his extensive experience and research, Florea emphasizes that cultural norms, personal attachments, and the lack of formal governance structures significantly influence the process. Romanian founders often postpone succession planning, driven by emotional attachments to their businesses and the challenges of identifying suitable successors, whether from within the family or externally.
Adrian Florea highlights the unique interplay between traditional values and modern business expectations in Romania. Founders prioritize loyalty and familial ties, frequently choosing close relatives as successors, even when they lack the necessary skills or interest. This approach contrasts with Western economies, where meritocratic and structured governance practices are more prevalent. The reluctance to involve external professionals or non-family members often complicates transitions, potentially risking the future of the business.
The emotional dimension of succession is a recurring theme. Founders often view their businesses as extensions of their identity, making the prospect of stepping back deeply personal and challenging. Florea underscores the importance of planning early, building trust, and allowing time for a gradual transfer of knowledge, leadership, and networks. Delaying these decisions can lead to missed opportunities and, in some cases, business failure at the first generational transfer.
Romania’s young market economy presents additional hurdles. Following decades of state-controlled enterprises, family businesses have only recently emerged as key drivers of the private sector. Many founders, now approaching retirement, lack the institutional frameworks or advisory structures to support effective succession planning. This gap highlights the need for professionalization and early engagement with next-generation leaders.
Florea concludes with actionable advice for family businesses: start succession planning early, balance trust and time, and embrace professional governance practices. By fostering open communication and aligning family values with business goals, founders can ensure a seamless transition that preserves their legacy and secures the future of their enterprises. As Florea notes, succession is not just a technical process but a deeply personal journey, requiring both self-awareness and strategic foresight. The whole article is HERE.
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