Taking Over the Family Business Amidst the Owner-manager's Sudden Death

In this video case, Mr Rasmus Jørgensen explains how it was like to take over the family business KALK much sooner than he had anticipated due to his father’s sudden death. When Rasmus entered the company as a 19-year-old he saw a lot of potential in KALK and was eager to take over the business. In the beginning of the 1990s he bought 25 per cent of the holding company. His father, Mr Michael Jørgensen, preferred, however, to sell KALK to an external party. He had seen children of owner-managers being forced to take over a family business and would not do that to his own son. 'His attitude became too much for me', tells Rasmus, who eventually developed a business plan which convinced the father of his capabilities and willingness to become the next owner-manager of KALK. With the help from an accountant, a lawyer and a tax expert they designed a change-of-ownership process where Rasmus would buy the remaining 75 per cent over a number of years until 2008. Michael intended to gradually withdraw from the daily operations and continue as an advisor to his son. 'But, we never got to that point', explains Rasmus. During the process, his father became seriously ill and passed away in 2002. He had not had the time to introduce his son to the sales work.