Why Advisory Services in Small Firm Ownership Transfers Fail
Many policy makers are unaware of the pitfalls in ownership transfers in SMEs and the inadequate advisory services. This paper presents the economic importance of business transfers, the research evidence to date on the main issues in ownership changes and discusses potential policies to reduce (advisory) failure in business transfers within the EU.The first recommendation is to create affordable one-stop shops for micro firm acquirers and sellers, as in start-up programs. Secondly, it is essential to register ownership transfers properly, using a uniform definition in order to measure its impact on economy, to detect the target group of (potential) firm owners and to evaluate policies and programs efficiently. Thirdly, the advisors involved in firm acquisition and ownership transfer should be stimulated to cooperate with other disciplines and use different and more transparent methods to improve their effectiveness.