Solutions for successful company succession

Company succession always changes a lot for all people involved. According to statistics, more than half of all elder and well-established entrepreneurs in Germany have already appointed a successor for their company. There are, however, many proprietors that have not decided on a successor yet.

Apart from handing the business over to one of their relatives, entrepreneurs may consider one of the staff members as their successor (also know as MBO). There are also proprietors that chose an external successor if no relatives or employees are deemed suitable to run the company.

The entire process of company succession can be divided into the following six steps:

1. orientation and becoming aware of the situation

• examine the situation within the family
• check whether there is need for action
• provide information on consulting and other possibilities

2. review of the situation

• Which are the aims pursued by the entrepreneur and the family?
• Is there a suitable successor?
• Which are the company’s future prospects and how is its strategic orientation?

3. develop a concept framework on the hand over

• management responsibilities
• the company’s assets and liabilities
• company funding
  

• legal aspects
• aspects of taxation
• settle conflicts (with staff members, customers, suppliers)

4. the company’s concept and its valuation

• check documentation and business strategy
• valuation of the company

5. arrange a contract

• consider legal aspects and taxation
• arrange or improve the contract
• conclude the contract

6. after the hand over

• new owner takes over the former owner’s role
• new owners ensure the company’s external and internal stability

We offer practise-orientated consultancy, particularly in the following fields:

• provision and analysis of other possibilities for succession planning
• analysis of the company’s future prospects
• valuation of the owner’s and the family’s aims
• choosing and contacting a suitable successor or purchaser
• developing a concept of how to transfer management possibilities
• developing a concept of financing
• controlling each step of the handover process, including financial engineering
• controlling the entire handover process
• creation of a company brochure
• evaluation of the company
• preparation and performance of due diligence
• contract negotiation
• provision of interim management in special situations

Benefit from our experiences in the field of company succession and from our international network!