The Pressing Challenge of Succession in Family Businesses

HerenciaCo, a new company dedicated to helping business owners secure their legacies and empower their employees through ownership, announced its official launch today. The innovative firm offers a unique approach to SME acquisition by creating opportunities for employees to benefit from the company’s success.

Approximately 80% of established family businesses fail to transition to the second generation, often due to lack of interest or differing visions from their parents who created the businesses. This leads to billions of dollars in lost wealth, job displacement, and the erosion of cherished legacies. HerenciaCo aims to address this critical challenge by providing comprehensive solutions and expert guidance.

“Today, we are facing the largest wealth transfer in history. Millions of Baby Boomers are retiring annually, many of them entrepreneurs. In Latin America, there are close to 64 million SMEs, of which 70% do not have a succession plan. In other words, we estimate that there is close to USD 1T at risk, and we want to help minimize the economic impact through our model,”

Says Eduardo Maldonado, COO de HerenciaCo.

“With HerenciaCo we will actively acquire retired-owned companies in Latin America through the employee ownership model over 20 years, to generate $10 billion in new wealth over the next decade. Through strategic acquisitions, we will leverage employee ownership to foster growth, stability, and seamless business transitions. Our mission is to safeguard legacies and promote economic empowerment in LATAM. I invite you to join us in reshaping business succession and strengthening the economies of our hemisphere,” said Benjamin Jones, Chairman of the Board of Directors of Jockey Ventures, the company that owns HerenciaCo.

Empowering Employees, Preserving Legacies

HerenciaCo’s unique approach focuses on employee ownership. This model allows family businesses to:

• Secure their legacy: By transferring ownership to loyal and involved employees, business owners ensure their vision and values continue to thrive for generations.
• Reward committed employees: Employee ownership fosters a culture of commitment, motivation, and shared responsibility. Employees share in the financial success of the company and become key players in its future.
• Unlock growth potential: Aligning everyone’s interests with the company’s well-being drives innovation, productivity, and sustainable growth.

More Than Just Transactions: Comprehensive Support

HerenciaCo goes beyond simply acquiring companies. Unlike Private Equity firms, the company is committed to a long-term vision of 20+ years working alongside the employees to continue to grow the business. To this end, they offer comprehensive advisory services that address everything from the emotional, psychological, and cultural aspects of the transition to operational aspects such as process optimization or growth strategies. This ensures a smooth, transparent, and successful process for all stakeholders.

Investing in the Future of Family Businesses

“We believe that employee ownership is the future of family businesses,” says Eduardo Maldonado, COO of HerenciaCo.  “It’s a win-win situation for everyone involved. Families can secure their legacies and reward their loyal employees, while companies gain a motivated and engaged workforce that drives growth and ensures continuity.”