Most people of my generation remember Mads Skjern from Matador. The hard-working entrepreneur from Korsbæk, who is ahead of his time, sees a gap in the manufacturing market - and builds a clothing empire.

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But we also remember how he ends up when the empire is passed on: No one wants to take over, and things really fall apart when his son Daniel makes it clear that he would rather design fancy dresses than sell Mads' cheap barware.

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The conflict has particular resonance in Denmark, as we are one of the countries in Europe where most businesses are run by the owner or founder - and therefore at some point must be handed over to the next generation or perhaps a private equity fund. A 2015 survey showed that approximately seven out of ten Danish companies are owner-managed.

Emotions need to be put on the table

I've seen many examples of generational transitions gone wrong. Emotions and feelings can tear families, friendships and partnerships into a thousand pieces.

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The classic strategy books don't offer much help. There is surprisingly little theory on how to reconcile emotions and business when passing on the life's work.

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In my experience, emotions need to be brought out into the open. They only become dangerous if they remain untold. And they are often more rational than you might think. Back to Korsbæk: Of course Mads Skjern turns his nose up at Daniel's fine dresses because his business is based on a rebellion against the exclusionary behavior of the upper class. On the other hand, it's no wonder Daniel has new ideas and cultivates his talent.

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Contradiction is not necessarily a problem in such generational changes, but emotions and ideals need to be brought to the table: What drove the old founder? Where is the lifeblood?

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Use emotions strategically

Then the emotions must be used strategically. For example, by formulating the red lines in the company's future strategy and action plan. For example, what is a no-go to sell from? What should we keep doing, even if it doesn't make a profit?

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One example is Carlsberg. In the old days, the entire production was located in Valby. When production moved to Fredericia, the Jacobsen house brewery continued in the historic surroundings in Valby - with a thick line under the connection to the old brewer and his visions.

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To me, it's an illustration that there can be room for both nostalgia for the past and hardcore business - if both are based on strategic clarity.

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On the other hand, if it's unclear what is emotion and what is business, it almost always ends in conflict when formulating the action plan.

Maybe the DNA needs to be reformulated

The paradox in many generational transitions is that the owner and heir are very concerned about the future: What do we need to invest in for the company to survive?

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But maybe it's also a good idea to dwell on the past: What was the DNA from the start? It can be an eye-opener for both owner and heir.

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So we can end where we started - in Korsbæk: Perhaps Mads Skjern's success was not based on cheap clothes. Perhaps it was built on a willingness to innovate and the courage to lead the way. All things that Daniel also possesses.

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This column is published on Jyllands-Postens Finance and in Jyllands-Posten, Business on April 20, 2022