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R-K-P | Company succession

 

Assistance in the field of company succession thanks to the discrete direct approach

 

Company succession describes the (entire or partial) transfer of entrepreneurial management and capital from one or several entrepreneurs who pass on the company to one or several entrepreneurs who take on the company. During this process, the regulations and the transfer of the company’s management and those relating to its shares may not all occur simultaneously. There is no interruption in the production and/or the provision of services and the company continues to focus on the same market. The value of the company does not depend on the transferor. Generally, there must be no restrictions concerning the form, time of succession etc.

 

In Germany, more than 70,000 companies per year need to solve the problem of company succession. Since each transfer is different, it is essential that at least the following points are settled:

• the date of the transfer
• the remuneration of the successor
• the contractual arrangements
• the payment terms
• the legal form of the company
• and, in part, alternatives to successors from within the family.

 

Drawing up a plan for the transfer can be helpful during this process. Should a company succession take place, it is recommended that the person selling the company proactively performs a Vendor-Due-Diligence (VDD) to prepare the transaction. In the event that the company is not sold but continued under the same or a slightly modified ownership structure, an entrepreneurial diagnosis is particularly important. This means a non-subject related assessment of the potential successor based on psychological methods. These methods are to ensure that the succession is sustainable and that it is put into the right hands.
Source: wikipedia.org

 

Company succession – a search with consequences