Each year, owners of profitable businesses grapple with the question of the succession of their companies. Often due to old age, but sometimes also following other lifestyle changes, today’s employers have to confront business succession. There is no way around it. The first problem is often finding a suitable successor in the first place. If you’re in this situation, you also have to determine how much your company is worth and figure out how the purchaser will pay.
We want to provide you with a brief overview of your options and invite you to contact us directly. Our ongoing consultancy during your business succession is even a state-subsidized service – and for good reason! Nothing is more important than ensuring the next generations of small to medium-sized enterprises (SMEs) in Germany.
The first challenge is of course finding a successor. You will first want to decide whether your company’s successor will be someone from your family or business or an outside individual. In the first two cases, a good succession plan is essential to make sure things run smoothly, a process which should take between one and three years to complete. If you decide to sell your company to an external buyer (whether a private individual or a company), you will first need to verify the party’s suitability as a successor as well as their solvency and of course their willingness.
The purchase price
Calculating the purchase price is an important factor not only for the finance authority and the bank, but of course also for you as the owner as it relates to your negotiating position vis-a-vis the potential successor. There are several different and in part complex methods of valuation, each of which comes with its own leeway. We can offer you valuable support to help ensure you’re not ripped off when planning your business succession.
Business succession financing
Once you’ve decided who will take over your business, you now need to determine the financial how. Suitable successors often lack the capital and this can impede or even prevent succession. Payment by installments is not only risky, it also binds you to your company for years to come. With her decades worth of experience in the banking and financial sector, Ms. Lipp is able to help nearly every successor gain the necessary means to wrap up purchasing a new business. From day one, we offer our ongoing support to both successor and seller as they deal with their own banks or banks from our network.
Besides finding a suitable successor, planning the adjustment and take-over, company valuation and securing financing, the process of business succession entails consulting qualified attorneys, tax consultants and auditors. You can rely on our network, which has grown organically over many years of cooperation.
On the day you officially hand over your business to your successor, it is our goal to ensure that you can close this chapter of your professional life in the confidence that your business, employees and customers are in good hands and that you received a fair price. You needn’t worry whether your successor will be solvent to pay later installments or you whether you will need to remain on call for business triage in the future.
We will continue to off our consultancy services to your former company. And if you wish, you can remain active as a consultant to your former company’s new management and ownership. In this way, your former company can still benefit from your experience and know-how while you no longer occupy the position of responsibility that made it so hard for you to separate leisure and business, as is so often the case.
And if you feel drawn to new entrepreneurial horizons, you already have, in us, the perfect companion to start a new business at your side.