Family Constitution and Generational Transition

Context and Need:
The owning family of a successful company in the chemical industry, with an annual turnover of approximately €500 million and a strong presence in global markets, sought our support in managing the generational transition from the second to the third generation. The goal was to establish clear rules governing ownership, corporate structure, statutes, and governance at a time when the company faced critical strategic decisions. These included transferring ownership to the next generation, strengthening the governance structure, and adapting the organization to future needs, as well as defining agreements that would align the expectations and interests of the three current shareholders and the seven NextGen members.

Our Role:
We assisted the company in structuring ownership, governance, and the roles of the various entities within the Group. Our focus was on revising the governance framework of both the holding company and the operating company, proposing structural changes to ensure a clear separation between decision-making and executive functions. We also developed Family Agreements to establish rules for entry, career progression, and remuneration of family members, while guiding the assessment of development paths for the NextGen. Another critical aspect of our intervention was aligning family decisions with updates to corporate bylaws, ensuring seamless integration between governance and long-term strategic vision.

Our Impact:
Our intervention led to the development of a clear and coherent generational transition plan, respecting the strong legacy values upheld by the ownership. Additionally, it facilitated an open dialogue among shareholders, allowing them to address key aspects of ownership transfer that had previously remained unspoken. The process strengthened the sense of belonging and alignment across generations, laying the foundation for a smooth transition and long-term business continuity.