Corporate Succession

COMPANY SUCCESSION SHOULD INCORPORATE THE FOLLOWING SITUATIONS:

  • Provisions for an unplanned corporate succession (in particular illness, death)
  • Regulation of a planned corporate succession
  • Personal regulations with a view to corporate guidance and the management structure
  • Strategy to avoid liquidity demands (legal share demands, heirs giving way etc.)
  • Planning of corporate financing by considering the future strategic direction
  • Safeguarding old-age pension of "seniors"
  • Legal and tax optimizations of corporate succession

The following aspects have to be observed:

 

LIQUIDITY IN CASE OF THE DEATH OF THE ENTREPRENEUR

  • Inheritance tax payments
  • Payments to heirs giving way
  • Legal share demands by a spouse and children
  • Accrued gain compensation claims ("Zugewinnausgleich")
  • Income tax payments
  • Securing income of the senior family

 

FINANCIAL REQUIREMENTS

Financial preparation of the corporate succession for the company and the senior generation:

  • Release of the private assets of the senior manager from the credit collateralization of the company
  • Exemption from liability out of personal guarantees for the company or out of possibly existing co-debtorship for corporate liabilities
  • Withdrawal of shareholder loans
  • Paying out retained earnings
  • Safeguarding old age pension of the senior generation

 

OBJECTIVES OF PLANNED CORPORATE SUCCESSION

  • Securing of the company's future
  • Safeguarding the management succession
  • Avoiding controversy
  • Avoiding claims
  • Safeguarding the senior generation

 

OUR SERVICES REGARDING CORPORATE SUCCESSION

We consult entrepreneurs with a view to corporate succession and discuss alternative options:

  • Family members as successor in the business and shareholders
  • Transfer by donation ("Schenkung")
  • Lease of the operations
  • External management, combination of family and external management
  • Family foundation
  • Transfer by reward (e.g. life tenancy, pension payment)
  • Solution independent from the family
  • Management-Buy-Out/Management-Buy-In
  • Sale to third party