Internal transfer of ownership or management
There are two types of internal transfer.
The transfer within the family is one in which the property and the management of the business are transferred to one or more members of the incumbent’s family.
The transfer to employees is a transfer in which employees take over the ownership of the business (employee buy-out – EBO), or one in which the management of the business is transferred to an internally promoted employee without there being any transfer of capitals.
Transfers within the family and employee buy-out are influenced by similar contexts and follow essentially the same stages in the transfer process. The figure below presents the main stages in these two types of transfer.
Note that the stages “Ground rules and planning” and “Nurturing and development of successors (or buyers)” are particularly important for these two types of transfer. These stages are indispensable to the development of potential successors (or buyers) competencies that are compatible with the business to be transferred.