Planning a business succession early on: the story of José Lopez

Even as a child, José Lopez was fascinated by the world of IT. He successfully turned his passion into a career – the proverbial rags-to-riches story. Although his parents, who had immigrated to Switzerland from Spain and Italy, could not afford to pay for his IT studies, Lopez founded his first company in 1996 at the age of just 18. Today, his company is one of the leading providers of software development and system integration in Switzerland. He worked almost non-stop for the first few years with determination and a good feel for the market. In 2005, he was able to move into a proper office for the first time and received his first major order, which enabled him to take on two employees. He pursued his business idea with conviction: “My aim is to support customers from A to Z,” says José Lopez.

Even back then, his company’s offering included not only programming and software development, but also comprehensive operating services – system maintenance, support and troubleshooting, updates and back-up services – a concept that only a few companies offer to this day.

In 2008, José Lopez transformed JMC Software into a public limited company. Business was booming, and the number of employees rose steadily. However, the company’s growth also required responsible succession planning.

By 2022, the company had a workforce of 50. “I have a lot of long-standing employees. The company’s success is largely due to this outstanding team,” says José Lopez proudly. However, the company’s size was also a turning point, as explained by Lopez: “Once you reach 40 or 50 employees, you cross the threshold of being able to manage everything alone,” he says with conviction.

In this phase, a company is often faced with the decision of whether or not to expand even further, which necessitates additional resources and capital. Lopez, who had never imagined parting with his life’s work prematurely, was suddenly confronted with the need to think about succession planning. He contacted his client advisor at UBS. “I’d already worked with UBS when I bought my house, and we’d established a relationship of trust,” he says.

His client advisor gave him three options for business succession: using borrowed capital to continue to grow, establishing a family office, or integrating the business into a group of companies. After weighing up all the pros and cons, it was clear that selling was the best way forward. So UBS began to look for suitable interested parties.

José Lopez set clear sales conditions and requirements for the buyer: He wanted the management and Board of Directors to remain in Switzerland, he wanted to have a say in Swiss activities, and he wanted financial security for his family.

After a selection process lasting several months, the solution was obvious: JMC would become part of Convotis, a global IT service provider. Why Convotis? José Lopez explains: “Convotis is like a big brother, with very similar IT services and entrepreneurial mindsets, just bigger and broader than we were back then.”

Following the integration, JMC became the core of Convotis Switzerland, made up of the former JMC team. José Lopez remained CEO of Convotis Switzerland and also took on a new role following the sale of the company: Group Chief Digital Officer. “Everything I was promised has come true,” he says happily.One of his first official acts in the new setting was to help in setting up a Convotis branch in Spain. Lopez sees the biggest change associated with the sale primarily as a gain: “I had decided everything on my own for almost 30 years. Suddenly I had to coordinate and engage in dialog. It was quite an adjustment.” He adds: “In return, I can exchange ideas and mirror important decisions. I find that very enriching.”

Be honest – wouldn’t the father of two have liked it if one of his children had taken over his company later on? “Of course, that would have been a nice option,” says Lopez openly. All the more so because his family plays a very important role in his life and has always supported his business plans. “I’m extremely grateful to my wife for doing so much to look after the family when I was so busy,” says José Lopez.

However, the children were still too young when the decision was made and the next step became apparent. Today, his daughter is 19 years old and is studying business administration, while his 17-year-old son is following in his father’s professional footsteps and will go on to study computer science. “I’m still a shareholder and member of the Board of Directors; the children can come on board at any time. I’d be delighted if my son wanted to gain experience at Convotis.” He adds: “And if he chooses a different path, that’s OK too. I trust that they will make the right decision for themselves.”

After 30 years of work, when many entrepreneurs are looking forward to a well-deserved retirement, José Lopez is still active in the company. “I was always the youngest, all the way through my professional life – in my first job and as a self-employed entrepreneur,” says José Lopez looking back. “That’s because I founded my company so early.”

Can he actually imagine quitting at some point? “Over the next few years, I’ll carry on supporting the growth strategy of Convotis to establish the Group as the leading full-service IT provider in Europe,” he says. “But yes, at some point, even I will stop working. Maybe then I can help my children by giving them tips in case they want to set up their own company one day.”

A lot can still happen between now and then, and José Lopez has proven more than once that he is ready to seize opportunities in life. One thing is definite: standing still is not an option for him. True entrepreneurs never really stop – they just keep reinventing themselves.