The role of the bank in the succession of forest properties – A study of stakeholders’ service needs

Summary

Of Sweden's total land area, approximately 28 million hectares consist of forest land. There are currently around 311 000 private forest owners who together own just over 50% of the Swedish forest area. The ownership of these forest properties changes continuously. Acquisition of forest properties usually takes place within the family, through a generational change. Generational change is a complex process involving many aspects: financial, business, legal, tax and emotional. The bank's involvement in the process can be crucial as financing is often required to enable the takeover of the property. Banking advice on the succession of forest properties includes support and advice throughout the process, answers to financing and liquidity questions, cooperation with the bank's partners for expert advice, and solutions for both current and future operations. The bank's main role is to provide a service where value is created through the interaction between the client and the bank. When offering a service, there is a risk of so-called service quality gaps if the customer's expectations of a service and the actual experience of the service differ. By semi-structured interviews with customers who have undergone a generational change with the help of one of Sweden's major banks, Handelsbanken. This study aims to explain the stakeholders' expectations and experiences of the Bank's work on the succession of forest properties.