Founders/Successors: mastering the handover
During MBO and MBI transactions, the selling founder is often asked to support the new team, or even to reinvest financially. The entrepreneur is thus facing a new situation, requiring him to rethink its role and positioning within the organization.
Finding the right balance between sharing experience and respecting the successor’s autonomy and authority, reinventing yourself in a role that shifts from decision-making to guidance, from action to oversight, continuing to find fulfillment in a more detached position—which is often unnatural for an entrepreneur—witnessing the new leader’s mistakes and successes achieved through different methods, resisting the urge to criticize in order to celebrate achievements: all of this makes for an incredibly delicate exercise when one has founded and led a company with strong convictions and proven methods!
So, how can the handover—a key stage in the business transfer process—be negotiated in the best possible way?
To shed light on this question, we have chosen to feature a dialogue between the founders and successors of KitU and Infraneo, two of our portfolio companies that underwent a management buy-in (MBI) transmission.
Good reading!
Crossed Interview
KitU and Infraneo's feedback and experiences
Idriss Benslimane – Founder of Infraneo (engineering company)
Bruce Xiste – Acquirer of Infraneo
Stéphane Poppoff – Founder of Groupe K France (professional vehicle outfitting kits)
Pierre-Yves Buisson – Acquirer of Groupe K France
1. What was the context of your company's sale, and what were your main motivations for this transaction?
Stéphane Poppoff (Founder of Groupe K)
My decision to hand over the company was driven by two main reasons. After dedicating 15 years to developing the concept I had created, health issues no longer allowed me to invest the full energy required to fulfill my role as CEO. Moreover, it is essential to recognize one’s own limits. I felt it was not only important but crucial to pass the torch to a successor capable of unlocking our growth levers and ensuring the long-term development and sustainability of the Group.
Pierre-Yves Buisson (Acquirer of Groupe K)
For my part, after a career in large corporates, I dreamed of taking over a human-scale company with great potential. I had the opportunity to meet Stéphane just as he was considering selling his business, and the strategic vision he had outlined made perfect sense to me. The company operates in the commercial vehicle outfitting sector, an industry with numerous growth opportunities—whether through international expansion, the development of a physical branch network, or an external growth strategy. This immediately won me over.
Idriss Benslimane (Founder of Infraneo)
In my case, the company’s transmission was a project prepared for several years. As early as 2015—three years before the sale—we implemented the necessary measures to ensure a smooth transition. It was crucial to secure the company’s future by structuring it properly and finding a buyer capable of continuing its development while respecting its core identity. The goal was to organize the transition well in advance, progressively involving the teams and structuring an effective handover process. At over 60 years old, this company represented my sole investment and my entire wealth. It was therefore natural for me to pass the baton while remaining a shareholder.
Bruce Xiste – Acquirer of Infraneo
By the time I joined the group in September 2018, the transition had already been planned. As Idriss mentioned, he had carefully anticipated this step, convinced that to enter a new phase of growth, the company needed to evolve in its governance. The group operated in a niche market, providing structural integrity services for wastewater networks, and I quickly recognized the company’s potential and strategic value. The infrastructure sector was new to me, but I was able to leverage my experience in services and the management of critical infrastructure integrity. Spending time with the founder allowed me to better understand the company’s history, vision, and organization, as well as the essential nature of its services for its clients.
On a personal level, the idea of entrepreneurship had been on my mind for some time after several years in the corporate world. This wasn’t my first opportunity, but this time, I seized it.
2. What were your concerns, and how did they influence your approach to the transition?
Stéphane Poppoff
I had already been approached several times by high-quality investors before I considered selling. However, the world of business sales and transmissions was completely unfamiliar to me. In this regard, when I made the decision to start the process, I believe I made the right choice by surrounding myself with field’s experts—both at the level of the investment bank that advised me and the auditors and lawyers who ensured the smooth execution of the transaction.
Pierre-Yves Buisson
My main concern was adapting to a new environment. Stéphane handed over his role to me from day one, which is quite unusual in this type of transaction. I took the time to listen to the team, understand the company’s culture, and adjust my approach to earn their trust.
Idriss Benslimane
If I had to mention one concern, it would be ensuring that the team embraced the change in leadership. A poorly managed transition can destabilize a company, which is why it was crucial to have a multi-month transition period, involving the management team at every step—choosing the investment bank, selecting the new CEO, onboarding the new shareholder, etc.
I also had to find the right balance between passing on my experience and gradually stepping back. That said, I had no major concerns thanks to the guidance and support of the investment bank that accompanied us throughout the process.
Bruce Xiste
The biggest challenge was gaining the team’s acceptance. Stepping in to replace a respected founder is always a delicate task. I chose to take a learning and observation-based approach before introducing my own vision. The goal was to create a climate of trust by being present on the ground and listening to employees. That said, I didn’t have any major apprehensions since Idriss had thoroughly prepared the transition for several years.
3. What was your role after the operation, and how did you adapt to it?
Stéphane Poppoff
Since I had planned my departure ahead of the transition, particularly with my key managers who already had a great deal of autonomy and were well-versed in our strategy as well as the fundamental principles to uphold, my role in supporting my successor mainly consisted of explaining the market he was entering in relation to the relevance of our products/services offering.
Pierre-Yves Buisson
My role initially involved analyzing the company’s strengths and weaknesses, then establishing a strategy in alignment with Sparring and Stéphane, and finally consolidating the team.
Of course, I asked Stéphane many questions about his understanding of the market and his way of doing things. A key challenge was bridging the shift from a centralized structure for key functions to a stronger delegation of responsibilities.
Idriss Benslimane
After the disposal, I deliberately and quickly stepped back to allow Bruce to establish himself within the teams. I had set up an assistance contract to support the company and the new shareholders over a three-year period, with an initial six-month transition phase. The main principle was to intervene only when requested and avoid any interference in day-to-day operations.
Additionally, I remained on the group’s supervisory board in a strategic advisory role, providing a long-term vision for the company’s development.
Bruce Xiste
My integration happened in two stages. First, as Executive Director for six months, maintaining a direct link with all managers and reporting to the founder. My goal was to build trusting relationships with the teams—from engineers to technicians—while familiarizing myself with the organization. During this initial phase, I visited the branches, met with clients and competitors, and even participated in fieldwork as a trainee to fully understand operations. Daily exchanges with Idriss Benslimane allowed me to explore ideas for growth, organizational evolution, and potential acquisitions. I learned to use his management tools, draft service notes, and structure the company with existing resources. J’ai appris à utiliser ses outils de gestion, à rédiger des notes de service et à structurer l’entreprise avec les moyens existants.
As the transition progressed, our interactions became less frequent, especially after preparing the 2019 budget. In January 2019, he began to step back, and by March 2019, I took over as President, ensuring both the continuity and development of the company.
4. How did the transition process affect the company?
Stéphane Poppoff
A founder deeply imprints its company, and it is often difficult for him to accept a different vision. He has mastered every aspect of the organization—from its employees and market to its clients, partners, and suppliers. However, after years of fighting to implement its leadership vision, he must accepts that some things will change with the arrival of their successor. That said, I was there to occasionally remind Pierre-Yves that his arrival should lead to an evolution, not a revolution—especially regarding the existing teams!
Pierre-Yves Buisson
The company and its employees seemed to accept the transition process quite smoothly. I had not anticipated how challenging it would be to listen to all the shareholders and shape an action plan that aligned with the reality on the ground. I had to reassess my priorities, investing more time and energy into building strong communication with my shareholders.
Idriss Benslimane
We had been preparing for this transition over the past three to four years, making decisions—particularly in terms of organization—that ensured I, as the founder, was no longer indispensable. Everything was structured to ensure a stable and seamless transition, preventing any sudden disruption to the company. This preparation, along with the strong involvement of the managers alongside me, helped avoid any surprises.
Bruce quickly integrated into the group and the teams, while also benefiting from the support of a high-quality financial shareholder to structure the company.
Bruce Xiste
There was no internal turmoil because I had already established my footing with the teams. The adaptation was gradual, and the group’s growth momentum continued smoothly alongside the new shareholders.
5. From a personal and professional perspective, how did you experience this transition process?
Stéphane Poppoff
The transition/sale process is truly a marathon! In my case, the transition lasted nearly 24 months, from the moment I decided to sell the company to the day I installed my successor in my chair! As such, one must be well-prepared both psychologically and physically because negotiations with potential buyers, combined with various audits, are highly energy-consuming situations. It is also crucial to have strong support throughout this long process to avoid losing momentum amidst the many points of tension and negotiations with buyers—who, just like me as the seller, were not acting against their own interests.
Pierre-Yves Buisson
The transition process is always too long and uncertain. It creates tensions in many ways, both personally and in one’s close environment. I believe that preparation and proper support are essential for a successful transition.
Idriss Benslimane
This type of operation is a real milestone in a career. Even with thorough preparation, handing over the reins is never easy.
In my case, things were made easier thanks to careful planning and a genuine willingness to sell. I was truly prepared for it and had no hesitation in letting go. Moreover, I quickly developed a strong connection with Bruce, who turned out to be an excellent acquirer.
Today, because of my passion for this industry and the fact that I founded this group, I still remain involved, providing my expertise while ensuring that the company benefits from my industry knowledge.
Bruce Xiste
The transition process is a key step in the success of a business transfer. I learned to practice active listening, humility, and patience. Building strong connections with operational teams was essential to gaining their trust and fully integrating myself. This experience provided me with valuable insights into human management and the importance of adaptability—lessons I have since applied to other business transitions.
6. In your opinion, what are the pitfalls to avoid, and what would be the ideal positioning for a founder during such an operation?
Stéphane Poppoff
There are multiple pitfalls to avoid, especially if you do not have a team capable of keeping the business running while you are consumed by the transition/sale process. I would offer three key pieces of advice to any business owner preparing for this intense experience:
Reflect deeply and be ready to take the plunge with unwavering determination to avoid doubts midway through the process. It’s important to be fully aware that this decision carries significant weight for the company and for one’s future professional and personal life.
Surround yourself with specialized professionals in companies’ sales and transmissions. Their fees represent a significant investment, but while they do not always guarantee success, they help optimize the company’s valuation and facilitate a “win-win” deal for both the seller and the buyer.
Find the right buyer. Among the many potential candidates presented by investment banks, it is crucial to identify one who does not solely focus on financial metrics or profitability but who understands the company’s strengths and assets, shows interest in its market, values its existing teams, and appreciates its client-supplier relationships and growth levers.
In summary, there is no magic formula for successfully transmitting a business, but I firmly believe that thorough preparation and careful
selection of key players in the process are crucial factors in ensuring the best possible outcome.
Pierre-Yves Buisson
Regarding the positioning of a founder in such an operation, I believe the key is to be well-prepared: understanding the mechanics of a business sale, the stakes, the players involved, and being personally ready to step back when the time comes. I think it would be beneficial for an investment fund like Sparring Capital to provide coaching for both sellers and buyers to help them transition into their new roles post-sale.
As for the buyer, I would advise them to carefully plan the first 100 days, to take time to understand different perspectives, company habits, and situations with a lot of listening, and to avoid making hasty judgments.
Idriss Benslimane
It is essential to anticipate and prepare the company to operate without its founder. Delegation and the establishment of an intermediate management team are critical. Moreover, the founder must accept the necessity of stepping back to allow the new manager to find its place. There are several pitfalls to avoid to ensure a smooth transition. First, the quality of the new shareholder is paramount—they must have a clear strategic vision and act as a solid support for the group and the new manager.
The selection of the new manager is also crucial, as they must not only align with the founder’s vision but also be capable of uniting the teams. This decision directly impacts the entire organization.
Another common mistake is the founder’s behavior after the transition. They should neither act as a know-it-all nor impose their way of doing things but rather support the transition with kindness. It is equally important that they intervene only when their opinion is sought to avoid undermining the new leader’s autonomy and decision-making.
Finally, choosing the right investment bank is a determining factor. Having the support of competent experts ensures a smooth and successful transaction, facilitating both strategic and financial aspects of the transmission.
Bruce Xiste
The successor should not seek to impose its vision too quickly. Before implementing any transformation, it is essential to deeply understand the company, its operations, and its culture. The success of a business transition relies on a gradual handover, where each party plays its own role: the founder should step back progressively, while the new manager takes the time to learn and integrate before fully assuming its responsibilities.
In a service-oriented business like the one I joined in 2018, teams are the backbone of the company. Therefore, building trust with them and with the outgoing founder is crucial. Demonstrating that the company’s evolution will benefit everyone is key. Once this trust is established, the transition can proceed smoothly and successfully.