Succession planning is one of the most important decisions faced by owners of small and medium-sized enterprises in Slovenia. Many companies founded around the time of Slovenia’s independence are now at a crossroads: whether to transfer the business to the next generation, sell it, or choose an alternative path that ensures an optimal outcome for the owners and long-term stability of the company.
In the article Succession Planning Requires Careful Consideration, published in the professional journal Podjetna Slovenija, Dean Mikolič, Founder and Managing Director of P&S Capital, emphasizes that transferring a company to descendants is only sensible if they genuinely wish to take over the business and are capable of managing and developing it competently. He highlights the importance of early involvement of successors in the business and gaining experience across different areas of the company, a practice commonly found in successful German family-owned enterprises.
If family succession is not feasible, selling the company is one of the available options. In the article, Mikolič stresses that a company must be properly prepared for sale. Well-organized business functions, transparent reporting, clearly defined responsibilities, and optimized cost structures are key factors influencing buyer interest and the final transaction outcome. He also points out that selling a company cannot be compared to selling real estate, as it is a complex process that requires professional guidance and trust in a single experienced adviser.
The article also addresses alternative solutions, such as company liquidation combined with property leasing, gradual profit extraction, or a transition to passive ownership with dividend distributions.
The full article by Dean Mikolič is available in Slovenian in the PDF document below.