Since 1948, Bourguignon Bois has been processing Ardennes wood into beams, planks and bespoke joinery in Walhain. The family business was founded by Eugène Bourguignon, a former wheelwright who became a self-taught sawyer. Three generations later, the company is still proud of its local roots and ambition.
"}},{"componentType":"paragraph","title":"A fire, industry changes, and market pressure","richBody":{"value":"The first shock came in 1983, when a fire destroyed the sawmill. Rather than rebuild it, Eugène’s son José and his wife Myriam decided to diversify the business, investing in wholesale, secondary processing, and advice to professionals and private individuals. Maintaining a family-run SME in such a competitive industry requires more than passion. You need a solid vision and management approach.
"}},{"componentType":"paragraph","title":"Becoming more competitive without losing your local roots","richBody":{"value":"After the fire, they rebuilt the sawmill on a smaller scale and focused on developing their wholesale operation. Delphine, the founder’s granddaughter, explains what was behind the strategy.
‘As a wholesaler, you need fast-moving inventory. But the sawmill cycle is slower. The fact that we still have a sawmill as well as a wholesale business gives us an advantage over others, because it offers flexibility and a relatively high level of responsiveness. This is definitely a strength.’
"}},{"componentType":"sectionTitle","title":"The strategy: structure the handover and invest in modernisation"},{"componentType":"paragraph","title":"Anticipating the transfer","richBody":{"value":"In 2008, José and Myriam decided to pass the baton to their 3 children, all of whom were already working in the family business.
‘We went the classic route of an intra-family takeover, with the help of a tax lawyer. We asked ING for support for the share buyback from family members. Human and relational aspects play an important role in this kind of decision. Ultimately, it was the close oversight by the relationship manager that made all the difference,’ Delphine explains.
"}},{"componentType":"paragraph","title":"New buildings, new machines","richBody":{"value":"Meanwhile, Matthieu, who manages the sawmill, is modernising the infrastructure and the product range. The offices and showroom have been moved to a new low-energy building, and new machinery has been installed in the workshops. Since 2015, Bourguignon Bois has also been selling its products online.
‘We were the first to have an e-commerce platform for wood and wood products,’ says Delphine. ‘In addition to wood, we also sell advice. In our line of business, direct contact with customers is key,’ Matthieu concludes.
"}},{"componentType":"sectionTitle","title":"ING: a partner every step of the way"},{"componentType":"paragraph","richBody":{"value":"Delphine explains how ING assisted the children with the share buyback and the investment decisions to modernise Bourguignon Bois.
‘We started by organising several meetings with our adviser at ING to better understand the financial implications and various available financing options for the buyback.’
"}},{"componentType":"paragraph","title":"A secure legal framework for the family","richBody":{"value":"‘We met with their legal advisers, who studied the legal aspects of the planned transactions. They analysed the company’s current structure, reviewed the Articles of Association, and proposed the necessary changes to facilitate the share transfer. They also advised us on the tax consequences, which enabled us to anticipate and optimise the transfer.’
An asset management company was created so that the three brothers and their sister could buy out their parents in a secure and structured way. A shareholders’ agreement guarantees the balance between the parties.
‘The shares of our parents were transferred to the new company, with the help of a notary. Afterwards, ING stayed on board, offering advice in terms of business development. This process was largely facilitated by the quality of the support that ING provided and the expertise of their teams, both on the human and technical level.’
"}},{"componentType":"sectionTitle","title":"The result: a solid, united, and forward-looking SME"},{"componentType":"paragraph","title":"Effective family governance","richBody":{"value":"In the past 15 years, the brothers and sister have been making strategic choices to adapt to a fluctuating market. Climate change has changed the distribution of tree species, with an impact on production and supply.
‘We talk a lot about daily management and longer-term objectives. We share the same values and vision for the business, making for a straightforward decision process. There are no power struggles or ego problems,’ says Delphine.
"}},{"componentType":"paragraph","title":"Flexibility as a driver for improvement","richBody":{"value":"‘Our industry has changed in the past 30 years,’ Stéphan adds. ‘Products have become more technical and diversified.’
Bourguignon Bois now offers various services, including calculation of materials required, creation of 3D plans, and even advice on building timber-frame houses.
"}},{"componentType":"sectionTitle","title":"What about the future? Keeping the fire burning"},{"componentType":"paragraph","richBody":{"value":"For now, succession is not on the agenda, as the grandchildren are still very much a part of the business.
‘We don’t really worry about the succession,’ Delphine admits. ‘Advance planning and good governance bring peace of mind, but the three of us are still very active and still have several ideas about where to take the business.’
"}},{"componentType":"paragraph","title":"ING, a partner for your future","richBody":{"value":"Thanks to this close relationship of trust with ING, the Bourguignon family was able to deal with this transitional period in the knowledge that they were surrounded by professionals, says Delphine.
‘I know that ING has a legal department and a department that specialises in succession planning. It’s reassuring to know that they have this expertise and that, when the time comes, we have a partner who can take entrepreneurial and family dimensions into account as we move forward. It’s equally reassuring to know that ING is on hand to offer support for investment decisions as a long-standing partner.’
"}},{"componentType":"highlight","title":"Tailor-made, secure investments","richBody":{"value":"The Bourguignons’ sale of company shares to their children was made easier by ING’s personalised support. Since the start of the transfer process, the advisers engaged in a continuous dialogue, taking the objectives of each generation into account.
The children manage the company through an asset management company, with ING as their strategic partner. The bank suggested secure investments that are tailored to their short-, medium- and long-term plans. Regular monitoring and a relationship built on trust enabled the family to move forward serenely and to plan the future of their business and their assets with confidence.