When Ceding Managers Know How to Make Themselves Dispensable

It is not always easy for an entrepreneur to give way to the next generation. However, it is necessary to know how to leave the playing field at the right time to ensure the success of the business transfer with the help of a business motivational speaker. Richard Tessier of Tessier Recreo-parc made sure to do things right so that his daughter and son were ready to take over the Managers of the company.

As for Claude Fournier and Sylvain Parenteau of Sixpro, they also had the chance to take their place alongside a transferor who knew how to give them space, which facilitated the transition. Testimonials.

A two-headed succession at Tessier Recreo-parc

Richard Tessier thought that the best way to prepare his daughter Marie-France to take over the management of the family business would be to have her constantly by his side. “She settled in my office for three years, she accompanied me during appointments with clients. She thus learned all the workings of the company,” says the man who founded Tessier in 1986.

Marie-France Tessier has held the position of President and Chief Executive Officer since 2019. Her brother Charles-Andre is Vice-President of Operations.

“The two complement each other well,” says Richard Tessier. Marie-France, who is a graduate of HEC Montreal, assumes all the management side while Charles-André is more in the field. He is an entrepreneur at heart. He created a new department for the construction of game modules, a task that was previously outsourced, which works very well.

Tell each other the real business

It is not uncommon for a family succession to raise many issues between the transferor and the younger generations. Tessier was no exception. To settle them, Richard Tessier found it important to set up a family council to allow everyone to express their expectations and their frustrations. Around the table, in addition to Richard, Marie-France, and Charles-André, there was also Martine, their mother, and business partner.

“It helped us a lot. This made it possible to put all the subjects on the table. For me, it was clear that the children should be equally part of the company even if they had different training paths and different roles. Everyone was able to share their point of view on this issue to agree”, explains Richard Tessier.

The Tessiers took the exercise even further by hiring an outside consultant who helped them get to the bottom of things. A process very strong in emotions, but which led to greater harmony.

We said the real business, he adds. We got to know each other even better and understand each other’s roles. The secret is to be transparent, even if some subjects are more confrontational than others.

Richard Tessier left day-to-day operations management gradually. His succession being well in the saddle, he is today very little present in the company, only attending meetings of the management committee each quarter.

He is very calm about his decision to give up his place. He said that I had moved around the business that I developed with the executive coach, it is now the kids’ turn to shape it in their image. It’s also easier to turn the page when you have projects. I now want to take on new challenges and above all slow down. Mentoring, writing a book on entrepreneurship, and volunteering are some of my current projects.

Even if he is retired, he is still part of an EntreChefs PME club. “The members don’t want to let me go,” he laughs. I share my experience as an entrepreneur, and I give advice. It’s another way to give back. »

Claude Fournier and Sylvain Parenteau of Sixpro

To hand over

It was in 2017 that Claude Fournier and Sylvain Parenteau took over from Richard Bourbeau at the head of Sixpro. The two men knew the company well since they had worked there for 16 and 18 years respectively (a third person was part of the reliever team, but she has since sold her shares).

“Handing over the business to his right-hand men was Richard’s preferred strategy. For him, it was a good way to retain those he considered to be his best elements and to motivate them to always do better for the company,” explains Claude Fournier, who today holds the position of Chairman and Chief Executive Officer. of the company of Notre-Dame-du-Bon-Conseil.

The succession process got underway in 2010 when Richard Bourbeau decided to gradually withdraw from operations. From that date, Claude Fournier assumed the general manager after having held the positions of production manager and operations manager. At the same time, the transferor entrusted him with the management of the management committee.

The future successors thus had the management of the SME, which specializes in the surface coating of metal parts for various industries, in hand. “Richard only came to Sixpro one or two days a week. We made him aware of the important decisions on which he challenged us. It was, therefore, necessary to have a well-developed file,” says Sylvain Parenteau, Director of Finance.

In hindsight, the two men consider that the seller’s attitude contributed to the success of the business transfer. “The fact that he largely ceded the land to us made things easier,” said Claude Fournier. We had the freedom to do things our way.

One last step to take

Once the transfer of power for all purposes was completed, the time had come to talk about the takeover of the company. The two men had already joined the shareholders for several years, but they had minority positions. It was during a business lunch that Claude Fournier and Sylvain Parenteau stated their wish to become full owners. Richard might have been surprised a bit by shock as he took some time to answer us. He finally acquiesced to our request, so we started the process to proceed with the transfer of ownership,” says Sylvain Parenteau.

A process that spanned nearly a year then began. There were several steps to go through: assess the market value of the business, meet the creditors, negotiate with the transferor… The transaction was finally concluded on November 1, 2017. We were quite known to the financial organizations already associated with the company and key clients; this has significantly assisted. They quickly placed their trust in us.

The fact that the latter is part of an EntreChefs PME club is another element that made a difference. “I was in the right place to discuss both operational and strategic points,” he explains. During the negotiations with Richard, this was my main point of discussion with the members of the club. They challenged me and made me think about things I hadn’t thought of. This made it possible to cover all angles.