Succession planning in family-controlled businesses presents unique challenges, especially when internal competition shapes the future of leadership. The current situation at Bertelsmann, Europe’s largest media company, reflects this reality as brothers Carsten and Thomas Coesfeld prepare to compete for the top position. For those advising closely held businesses, including an experienced business succession planning lawyer, these unfolding events offer timely lessons on governance, legacy protection, and leadership development.
Bertelsmann, founded in 1835 and still controlled by the Mohn family, faces a defining moment as CEO Thomas Rabe prepares to step down by 2026. Both Coesfeld brothers, part of the next generation of family leadership, are vying to replace him. Carsten Coesfeld currently leads Bertelsmann Investments, while his brother Thomas heads BMG, the company’s music division. Each has built a strong reputation within different parts of the business, but only one will secure the top spot.
While leadership transitions are a routine challenge for all companies, family businesses like Bertelsmann face additional difficulties. The intersection of family ties, ownership stakes, and board oversight can complicate decision-making and strain relationships, especially when more than one family member aspires to lead.
Internal Competition Brings Big Opportunity And Risk
Healthy competition within a family can drive performance, innovation, and personal growth. However, it can also trigger divisions if succession plans lack structure or transparency. For closely held businesses, failing to manage these dynamics can lead to reputational damage, operational disruption, or even legal disputes. The Coesfeld brothers’ competition has drawn global attention, but it also highlights how family-run companies need clear succession policies. Formal governance structures, documented leadership criteria, and neutral advisory boards can help mitigate personal conflicts. Without them, transitions often turn into prolonged power struggles.
In Bertelsmann’s case, both candidates bring unique strengths to the table. Carsten’s investment experience aligns with Bertelsmann’s diversification strategy, while Thomas’s leadership of BMG reflects expertise in managing creative industries. How the board weighs these factors and how transparent they remain during the selection process will shape the company’s reputation and internal unity moving forward.
How Boards Balance Family Ties And Business Priorities
Succession in family businesses isn’t decided at the dinner table. It’s guided by boards that must balance family influence with professional standards. At Bertelsmann, this responsibility falls to the supervisory board, which includes both family representatives and independent directors. Their role is not simply to select a successor, but to protect the company’s stability, align leadership with strategic goals, and preserve shareholder confidence. Boards must also consider scenarios where neither family member is the ideal candidate, highlighting the need for succession plans that prioritize business continuity over personal preference.
For family-controlled companies worldwide, this situation offers important reminders. Succession isn’t a one-time decision; it’s an ongoing strategy supported by legal frameworks, shareholder agreements, and trusted advisors.
Why Succession Planning Matters For Family Enterprises
The Bertelsmann example demonstrates how unstructured transitions can destabilize even the most successful businesses. It also emphasizes why companies need experienced advisors to help manage succession before conflicts arise. A business succession lawyer may guide businesses through preparing governance policies, structuring buy-sell agreements, and developing leadership pipelines to protect operations and family relationships.
Our professionals recognize the unique challenges that family-owned businesses face during succession transitions. Our network of trusted legal and advisory professionals helps make certain that businesses remain protected, even during leadership change. If your firm works with business owners preparing for succession, consider listing your law firm with Estate Planning Pros, and stay connected to the estate and succession planning community.