Is Entrepreneurship Good for Me?

“Repreneurship is a responsible, dignified and effective business project,” assures Jessica Grenier, the founder of Oria, an agency specializing in family takeovers. However, it is important to remain clear-headed about the potential of the company you are buying: ensure its financial solidity, its place in the market, the future you see and the possibilities of developing your business model. In both cases, entrepreneurial and managerial skills are key. “Of course, these skills are developed on the ground, through sponsorship or specific training. It is important to diversify your learning portfolio!” It is important to ask yourself: is my entrepreneurial creativity sufficiently developed to give a second life to this company? Is my project strong enough to mobilize me over the coming years?

Internal transmission, a career project

There are three main types of takeover: internal, family and external. Internally, a buyer buys the company in which he works to ensure its succession. "Young people are increasingly attracted to this career path," marvels the entrepreneurship enthusiast. "It's a great way to give meaning to what we do every day." The transition to the role of leader is generally more gradual for the employee who has moved on to ever more responsibilities. He knows the company through experience, he is aware of its culture, its market, its customers, the team. When his intentions are clear from the start, he can even be supported by the manager throughout his progression.

Today, the big challenge is retaining the workforce and attracting talent. "This sustainability strategy is not promoted enough, but I am convinced that takeovers will increasingly involve internal takeovers in the coming years."

Family recovery: a long, quiet or rough river?

The one who comes from a third generation of business wants to restore the family business. "These are generally more sustainable businesses, true socio-economic anchors of a community," says the co-author of Génération Repreneurs . In her book, she paints the current picture in Quebec: 51% of Quebec SMEs with 20 to 99 employees and 52% with 100 to 499 employees are the result of a takeover activity. The larger the size of the SME, the more buyers there are. The next challenge will be to support families towards the third generation. "We have already made transfers," explains the specialist. There are several complex transitions to come in Quebec, including estates with dozens of members, impressive business and investment portfolios."

If the adaptation is more distributed for the family buyer who has been immersed in the company since forever, and who knows its values, its mission, its history and its culture, this is not always the case when the heirs do not work in the organization. More tensions can arise with employees or even with the transferring generation. "Even if the strategic renewal is naturally initiated and the transfer plan is tacit, the famous letting go of the relay is fundamental. There is a relational complexity with the family takeover. The cohabitation is longer, it is sometimes measured in ten years, like Cassis Monna & Filles ."

External recovery, a little more turbulence on the horizon!

In the case of external transfer, by a person or a group of buyers with no connection to the company, the dynamics are different. The appropriation time is shorter than in an internal or family takeover. First, you have to ensure the right fit and align the project between the stakeholders, that is, be certain that the buyer and the seller are on the same wavelength and agree to work together on the transition. The buyer must also be able to identify what they can do with the company to bring it into its next life cycle. "I call this getting on the branch to have a better perspective!", illustrates Ms. Grenier. We are generally talking about six months to a year, sometimes even less. The buyer must have acquired good reflexes to quickly validate their project."

While respect, humility, patience and trust are required, some stories of express transitions can be successful when there is a mutual agreement between the parties. "I see new owners who want and can quickly have free rein, as was the case with Chocolats Favoris ."

The big challenge for external takeovers is market transparency in order to more easily connect those who want to sell and those who want to take over. “There are no for sale signs in front of a business. There is a hidden market, information circulates within networks. Fortunately, there are more and more professionals specializing in this type of transaction,” confirms Jessica Grenier. So, how do you find a business to take over? “In the current context, the advice I give is: start by building your business network, seek out support resources, partner with others to be stronger and more confident if necessary (this is the team entrepreneurship that we see more and more among young people), gain experience, develop your skills portfolio, and when the opportunity passes, be ready!” says Ms. Grenier.

Post-recovery, a crucial step often overlooked

"The first three to five years following the transaction are decisive," confirms Jessica Grenier. A buyer who lands too quickly in the company risks giving an electroshock to the entire ecosystem. "A relationship must have been created. The outgoing owner must share internal information transparently and the newcomer must want to learn." A transfer of knowledge is generally organized after the transaction when it is an external takeover (internal or family, it is often upstream). It can take the form of mentoring or specialized support, and dissected according to the different spheres to be integrated: the more technical know-how, the culture and history of the company and our place in the market. It is advisable to meet with all stakeholders (suppliers, customers, partners) to appropriate not only the premises, but also the social structures that the transferor has put in place. This is an essential step in realizing a renewed vision and strategy for the company.

When the transfer of leadership has taken place in a balanced and transparent manner, the rest is generally easier. “The post-takeover is a fundamental and unique step, but one that is often neglected,” says Jessica Grenier. “Support and specialized expertise are increasingly developing; we are laying the foundations for an entire entrepreneurial culture in Quebec.”