CORPORATE When should you start preparing for company succession?

Business succession is a complex process that requires careful planning and timely preparation. Ideally, preparations should begin at least five to ten years before the planned handover date. This planning horizon allows sufficient time to carefully plan and implement all the necessary steps and overcome any unforeseen challenges. This long period also prevents you from coming under pressure and making the wrong decisions.

What are the prerequisites?

Successful business succession requires several prerequisites:

1. Legal clarity: Clarify the company’s ownership structure and the co-determination rights of shareholders, as well as draw up a legally sound transfer agreement later on.
2. Financial stability: review and, if necessary, prior optimization of the company’s financial situation (working capital management, corporate structure).
3. Finding a successor: Search for a suitable successor, whether within the family, in the company, or externally.
4. Documentation: Complete and up-to-date documentation of all relevant business documents for inspection by prospective buyers.
5. Tax planning: tax optimization and early clarification of possible tax burdens.

What alternatives do I have for a succession?

There are various ways to organize company succession:

1. Family succession: handover to a family member (or several) who takes over the management.
2. Internal succession: sale or handover to an existing employee or management team.
3. External sale: sale to an external buyer or investor.
4. External succession: An external manager takes over the company’s management, and the shareholder structure is restructured at the same time.
5. Merger or takeover: Merger with another company or sale to a larger company.

Who should I seek advice from?

For successful succession planning, it is advisable to seek advice from various experts:

1. Lawyers: specialists in business law can help with the legal structure of the transfer process.
2. Tax consultants: they can analyze tax implications and develop optimization strategies in advance.
3. Management consultants: support with the strategic planning and valuation of the company.
4. Financial advisors: advice on financial issues and ensuring the company’s financial stability.

Where can you find out more?

There are numerous sources to obtain comprehensive information about business succession:

1. Online resources: websites and blogs from experts, such as lawyers or business consultants, offer valuable information and current trends.
2. Chambers of commerce and crafts: These institutions often offer information events and workshops.
3. Networking events: Exchanges with other entrepreneurs who have already successfully completed a succession plan can be very helpful.

We can help you!

Start planning your business succession at an early stage. Contact us for a no-obligation personal consultation to discuss the next steps and ensure your company is optimally prepared.