Confianz

Etiqueta: Confianz Blog

  • How to ensure the survival of the family business in 2025

    Family businesses in Spain support 92% of the business network. But in 2025, survival will require much more than just endurance. Effort and tradition are not enough. Change is becoming a matter of life and death: the survival of the family business today is not a matter of faith, but of strategy. And whoever understands this in time, wins.

    Family businesses need muscle to survive

    Today, surviving means growing up. It is not a desire, it is an obligation. Family businesses are still smaller, less international and less technological. This triple handicap makes them vulnerable.

    The fact is clear: 94.5% of microenterprises are family-owned, but only 1% of large companies are family-owned. This is no coincidence. It is a symptom that size matters. A lot.

    Small family businesses feel that their essence lies in their human size. And that is true. But that essence cannot be an excuse for not expanding, for not professionalising their management or for not internationalising their activity.

    Did you know that family businesses that manage to grow are also more profitable than non-family businesses? Growth not only protects: it multiplies value. However, to get there you have to make uncomfortable decisions: opening up to external partners, betting on new markets, investing in technology when you can’t yet see the return.

    At Confianz we analyse, propose realistic plans and execute. We know that every family and every company is unique. And that is why each strategy is unique too.

    The generational handover 

    Who will be running your company in ten years’ time? This question terrifies many family entrepreneurs. And no wonder. Only one in three family businesses makes it through the first generation.

    Many think that it is enough to leave the company «at home». But the family name does not guarantee leadership.

    The new generation not only needs to know the company: they need training, management skills, strategic thinking and digital vision. Not preparing the successor is like flipping a coin with the company at stake.

    Moreover, the handover must be managed in two dimensions: business and family. Clearly separating family interests from business interests is vital. Family protocols, well-defined governing bodies and clear rules are the basis.

    We support our clients in their succession processes from a 360º perspective. It is not just a matter of transferring ownership, but of ensuring that the succession strengthens the project. That there are no heavy inheritances or open conflicts. The aim is not to pass the baton: it is to pave the way.

    Without innovation, the family business disappears within 10 years

    Innovation is not a luxury. It is a matter of pure survival.

    The report «Relevance and Survival of Family Businesses» reveals that only 4.5% of family businesses are present in technology-intensive sectors. That means being left out of the great opportunities of today and the future.

    And we are not just talking about developing new products. We are talking about transforming internal processes, adopting digital tools, using artificial intelligence, managing customer data in real time, automating repetitive tasks.

    Digitalisation is no longer an afterthought. It is at the heart of any growth strategy. Family businesses that have chosen to integrate technology show higher rates of profitability and resilience.

    Of course, transforming a family business does not happen overnight. It involves overcoming internal resistance, training teams, redefining roles and investing for the long term.


    In 2025, it is not the one who has been open the longest that survives. Those who know how to read change and act fast will survive.
    Family businesses have proven to be longer-lived than non-family businesses. But this historical advantage will not work if it is not updated.

    Do you have doubts about how to secure the future of your company? That’s normal. The important thing is not to stand still. If you want to start building a stronger future for your family and your business, let’s talk. We’re here to help.

  • What is an indemnity in M&A and how does it protect you?

    In any sale and purchase of a company, there is one element that can save the parties from a million-dollar problem: indemnity in M&A. Sound familiar? It’s time to get it right.

    What exactly does an indemnity cover in M&A?

    Imagine this: you are about to close a deal. You have done your due diligence, but you see a possible tax lawsuit. It hasn’t materialised yet, but alarm bells are ringing. In that scenario, an indemnity clause is not a suggestion: it’s your bulletproof vest. It obligates the seller to bear the cost if that problem is triggered after closing. Without it, that potential lawsuit can become your nightmare, legally and financially.

    Indemnities apply to known risks. We are not talking about vague promises like warranties, but precise guarantees: if X happens, you pay.

    Typical examples:

    • Ongoing litigation
    • Fines for tax inspections in process
    • Outstanding labour debts

    The key is to put it in writing. Because if you know it and you don’t agree to it, you won’t be able to claim. It’s that simple. It’s that dangerous.

    Indemnities vs Civil Code

    This is where the second level of the game comes in: the Civil Code. Article 1484 states that the seller is liable for hidden defects. But beware: if the buyer knows about them, there is no longer any liability. In the M&A world, this is not always the case. That is why sandbagging clauses exist. What do they do? They allow you to claim even if you were already aware of the problem, as long as the seller has concealed it or lied about it in his statements.

    But is that legal in Spain? It depends. Some courts validate them on the grounds of contractual autonomy. Others do not, considering them contrary to mandatory rules. What is clear is this: if you don’t talk about it and don’t agree to it, you lose. This is why it is often decided to directly exclude the application of the Civil Code. But this is not a minor decision. Because in doing so, it also removes its protections. It can be a double-edged sword.

    At Confianz we evaluate each case. It’s not about filling a contract with meaningless clauses. It’s about designing an agreement that works, that holds up and that defends you. We also help to set clear limits: what risks are covered, for how long, with what economic ceiling and under what conditions. Because a poorly negotiated indemnity can be a dead letter.

    How we approach it at Confianz

    At Confianz we do not use templates. Each operation has its own edges, risks and urgencies. And indemnities are too important to improvise. Our approach:

    • We take a closer look at due diligence
    • We detect real risks, not assumed risks
    • We design clauses that make both legal and practical sense.
    • We negotiate without fear and with substance

    We know that a badly drafted clause can cost millions. And we also know that negotiations are often avoided so as not to «strain» the relationship. We say the opposite: you have to tighten it where it is needed, so that it does not break later. Moreover, we help to filter out what is reasonable. Because not everything should be covered by indemnity. They can be limited to clear cases: malice, blatant errors or known but unresolved facts. This protects the buyer, without suffocating the seller.

    That is why we say that indemnities are not small print. They are the heart of the contract. And if they are badly done, there is no turning back.

    An indemnity in M&A is not just a legal formality. It is your life insurance in a complex transaction. It may sound like a technicality, but it is not. If you are in the middle of an M&A transaction or about to enter into one, don’t jump in without it in place. A clear indemnity can save you years of litigation and headaches.

    At Confianz, we have been fine-tuning these clauses for years. Not with theory, but with practice. Real cases. Real people. Real risks. Are you buying or selling a company? Let’s talk.